You are given an annuity payable continuously at the rate of • $1000 per year while both (40) and (50) are alive • $600 per year while one of (40) and (50) is alive and the other is dead The present value of this annuity is $9400. A second annuity payable continuously at the rate of $1200 per year while either of them is alive has present value $13200. What is the present value of an annuity payable continuously at the rate of $1000 per year while one of (40) and (50) is alive and the other is dead?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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6. You are given an annuity payable continuously at the rate of
• $1000 per year while both (40) and (50) are alive
• $600 per year while one of (40) and (50) is alive and the other is dead
The present value of this annuity is $9400.
A second annuity payable continuously at the rate of $1200 per ycar while either of
them is alive has present value $13200.
What is the present value of an annuity payable continuously at the rate of $1000 per
year while one of (40) and (50) is alive and the other is dead?
Transcribed Image Text:6. You are given an annuity payable continuously at the rate of • $1000 per year while both (40) and (50) are alive • $600 per year while one of (40) and (50) is alive and the other is dead The present value of this annuity is $9400. A second annuity payable continuously at the rate of $1200 per ycar while either of them is alive has present value $13200. What is the present value of an annuity payable continuously at the rate of $1000 per year while one of (40) and (50) is alive and the other is dead?
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