Question

Today is January 1 2020, Jackson will use a single premium to purchase an annuity today....

Today is January 1 2020, Jackson will use a single premium to purchase an annuity today. This annuity pays 10,000 at the end of each year while Jackson is alive. The estimated probability of Jackson surviving for the next 4 years is stated in following table. The yield rate is assumed to be j1 = 3.10% p.a. Calculate premium value. Round your answers to three decimal places. Year Probability of surviving from start of year to end of year 1 0.73 2 0.63 3 0.28 4 0

Select one:

a. 16400.000

b. 15562.292

c. 12582.118

d. 15428.600

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