A life annuity on (x) provides for benefits made continuously for 2 years, provided that (x) is alive. The annual rate of payment at time t is c(t), defined by c(t): = t, 0 ≤ t < 1, 1 ≤ t ≤ 2. The interest rate is 0, qx = 0.3, and qx+1 = 0.4. Find the present value, assuming UDD.
A life annuity on (x) provides for benefits made continuously for 2 years, provided that (x) is alive. The annual rate of payment at time t is c(t), defined by c(t): = t, 0 ≤ t < 1, 1 ≤ t ≤ 2. The interest rate is 0, qx = 0.3, and qx+1 = 0.4. Find the present value, assuming UDD.
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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02
Transcribed Image Text:A life annuity on (x) provides for benefits made continuously for 2 years, provided that
(x) is alive. The annual rate of payment at time t is c(t), defined by
0<t < 1,
c(t)
1<1<2.
The interest rate is 0, qx = 0.3, and q,+1 =
0.4. Find the present value, assuming UDD.
%3D
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