(c)(d)Mr Jones is to receive a deferred annuity of £2500 which starts at the end ofthe third year from now and continues for a period of 12 years from its start.Calculate the present value of this deferred annuity on the basis of a discountrate of 7% per annum. Show all your working.The probability that a life aged x will survive at least t further years is denotedby tpx. The future lifetime of a life aged x, denoted by Tx, has expectationE(Tx). Suppose that for a population of individuals tpx is given by(i)(ii)tpx-(1-1/5tfor 0≤t≤125-x.125-xCalculate the life expectancy E(Tx) for a person aged 55 from thispopulation.Work out the force of mortality at age 90 for an individual aged 55.

As per the guidelines if multiple questions are asked at once, then the solution for the first…

Mr Jones is to receive a deferred annuity of £2500 which starts at the end of the third year from now and continues for a period of 12 years from its start. Calculate the present value of this deferred annuity on the basis of a discount rate of 7% per annum. Show all your working.

Mr Jones is to receive a deferred annuity of £2500 which starts at the end of the third year from now and continues for a period of 12 years from its start. Calculate the present value of this deferred annuity on the basis of a discount rate of 7% per annum. Show all your working.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Question

(c)
(d)
Mr Jones is to receive a deferred annuity of £2500 which starts at the end of
the third year from now and continues for a period of 12 years from its start.
Calculate the present value of this deferred annuity on the basis of a discount
rate of 7% per annum. Show all your working.
The probability that a life aged x will survive at least t further years is denoted
by tpx. The future lifetime of a life aged x, denoted by Tx, has expectation
E(Tx). Suppose that for a population of individuals tpx is given by
(i)
(ii)
tpx
-(1-
1/5
t
for 0≤t≤125-x.
125-x
Calculate the life expectancy E(Tx) for a person aged 55 from this
population.
Work out the force of mortality at age 90 for an individual aged 55.

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