Hi

Could you please explain the reasoning behind the solution given in the memo? Why is the guaranteed annuity of duration n being paid first and then the annuity with duration t being paid afterwards (since it is being discounted back n years after the initial annuity)? I did it differently and so why would my expression be incorrect in this case?

Both answers follow mathematically when I try and simplify the integral of the annuity with term T+n depending on whether I split the integrals at t or n, but intuitively the other expression makes more sense to me as surely the guaranteed annuity with n payments occurs **after the death** of the policyholder and the annuity dependant on t occurs whilst the policyholder is still alive?

Thanks