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Quick Joint Lives question

0 votes
asked Nov 10, 2018 in BUS 3024S - Contingencies by Faith (610 points)
reshown Nov 10, 2018 by Njabulo.Dube


What would the EPV of an annuity payable continuously to joint lives until 5 years after the second death be?

1 Answer

+1 vote
answered Nov 10, 2018 by Njabulo.Dube (2,950 points)

If I interpreted your question correctly you are looking for a last survivor annuity with a guaranteed annuity payable for five years after the second death. The expression would be:

$$ \bar{a}_\overline{xy} + \bar{A}_\overline{xy} \bar{a}_\overline{5|}$$