A retiree is offered the choice of two continuous annuities: − A life annuity, paying 30,000 per year. − A life annuity with a 5-year certain period, i.e., an annuity paying benefits for life, but with a minimum pay-out period of 5 years. The benefit amount for the second annuity is chosen so that the expected present value of the two annuities is the same. Given ? = 0.02 and ? = 0.07, determine the annual benefit amount of the second annuity, ??

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