CT5- April 2009, qus 7

[Bharti Singla]

Hi all
Here's a qus. in revision notes, Ifoa April 2009,qus.7
In this qus., the annuity payments are given payable in advance monthly.
But in the solution, they have taken annuity in arrear monthly. Although it's not going to affect the final answer, I just need to confirm is there a mistake in the solution ?

Thanks

 

[Robert Chadburn]

Actually the question does not say it is payable in advance, but that it is paid on the 1st day of the month. The first payment is made on the next 1st of the month that follows the fifth anniversary of the male's death - that is, in arrear.

 

[Bharti Singla]

Actually the question does not say it is payable in advance, but that it is paid on the 1st day of the month. The first payment is made on the next 1st of the month that follows the fifth anniversary of the male's death - that is, in arrear.

Oh yes, got it. Thank you sir.