Hi, I'm struggling to understand the solution to this question. I believe the question is referring to a whole-life annuity payable quarterly in arrears, to a life aged 82 and 1/4 exact. In the solution (examiner's report), it states that we only require payments from age 82.5, 82.75, 83, 83.25 and 83.5, however I don't understand this as I am interpreting this as a whole-life annuity? Thanks in advance, Greg
Hi Greg, I think the examiners have forgotten a ... here hence your confusion. Indeed the rest of their solution is consistent with valuing a whole life annuity payable quarterly from age 82.5. Joe
