Chapter 14, Problem 25RE

(a)

To determine

To calculate: The benefit if the account value is $\$1,000,000$ and the monthly benefits which is compounded monthly at a rate of $9\%$ is last for 20 years.

(b)

To determine

To calculate: The value of $\frac{\partial B}{\partial V}\left(1000,20\right)$ and interpret the result if the monthly benefits B as a function of account value V is, $B=\frac{3V}{400-400e^{-0.0897t}}$.

(c)

To determine

To calculate: The value of $\frac{\partial B}{\partial t}\left(1000,20\right)$ and interpret the result if the monthly benefits B as a function of account value V is, $B=\frac{3V}{400-400e^{-0.0897t}}$.