Jill, Age 39, Can Buy a Deferred Annuity That Will

Jill, age 39, can buy a deferred annuity that will pay $100 per month beginning at age 65 and will continue until her death for a single premium today of $1,000. Jack, age 37, can buy a deferred annuity that will pay $100 per month beginning at age 65 and will continue until his death for a single premium today of $900. What can be said about the single premium that would be required of Jill and Jack for a joint and 100 percent survivor annuity that will pay $100 per month beginning at age 65?

A) The cost will be about $1,900,
B) The cost will be between $900 and $1,000,
C) The cost will exceed $1,000,
D) It is impossible to determine anything about the price of the joint annuity because the differing ages of the annuitants would require the use of a mortality table to determine the price.