It's been a long day, can anyone see what I'm doing wrong here? payment stream is 1000v^(1/12) + 1003.92v^(2/12) etc take out factor of v^(12) = 1000 + 1003.92v^(1/12) etc pv = 12000 x annuity payable monthly in advance from 65 at 4% x (1/1.09)^(1/12) but this doesn't tally with the answer?
You've not got any probabilities in there. To get the first payment, (65) has to survive to time 1/12.
