annutities - three independent lives

dimanche 12 octobre 2014

Hi,



I cannot find any questions on 3 lives so can you give me a lead on the following question? I translate from another language so I simplied the wording:



3 lives aged (x), (y) and (z) with independent future lifetimes. You are given:



- PV of 1,000 payable at the end of every year, payable as long as at least one of (y) and (z) is alive, after (x) dies.....is 9,000.



- PV of 2,000 payable at the end of every year, payable as long as both (y) and (z) are alive, after (x) dies.....is 12,000.



Calculate 2000(a_xIy + a_xIz).



The answer is 30,000.



In the last line I tried to write an awkward notation for the two reversionary annuities: y gets the money after x dies and z gets the money after x dies.



I cannot seem to find anything to read on more than 2 lives, other than just old books. I have couple more questions similar to this one, maybe your answers will help me do those ones.





annutities - three independent lives

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