Suppose that payments are to be made quarterly find the


You are given that q70 = 0.2, q71 = 0.25, q72 = 0.30. Interest rates are 20% for the first 2 years and 30% thereafter. A 3-year life annuity on (70) provides for benefits of 1000 in the first year, 2000 in the second year and 3000 in the third year, provided that (70) is then alive. Suppose that payments are to be made quarterly. Find the present value if: (a) the first payment is to be made at age 70; (b) the first payment is to be made at age 70 1.

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Basic Statistics: Suppose that payments are to be made quarterly find the
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