What will the yearly income be if instead of a straight


The present values of a 10-year life annuity on (60), and a 10-year compound inter- est annuity, with annual payments of 1, are given, respectively by a 60(110) = 5 and a (110; v) = 6. A person age 60 has 100 000 that he plans to pay as a single premium for a life annuity, beginning at age 60. This will provide a level income of 12 500 per year for life. What will the yearly income be if, instead of a straight life annuity, he purchases a life annuity with a 10-year guaranteed period?

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Basic Statistics: What will the yearly income be if instead of a straight
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