An individual age 50 is promised a payment of $8,000 if he is alive at age 55.If he dies within the next 5 years,his estate will get ½ of this amount,payable at the time that he would have turned 55.You are given the probability of a 50 year old surviving to age 55 is 0.9464.If the interest rate is i = 5%,how much will it cost this individual to buy this payment scheme?
A)$5932.23
B)$6100.22
C)$7571.20
D)$7785.60

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The Answer of An individual age 50 is promised a payment of $8,000 if he is alive at age 55.If he dies within the next 5 years,his estate will get ½ of this amount,payable at the time that he would have turned 55.You are given the probability of a 50 year old surviving to age 55 is 0.9464.If the interest rate is i = 5%,how much will it cost this individual to buy this payment scheme?
A)$5932.23
B)$6100.22
C)$7571.20
D)$7785.60

An Individual Age 50 Is Promised a Payment of $8,000