q23 You are given the following situations for (x): $100,000 is used to purchase...
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q23
You are given the following situations for (x):
$100,000 is used to purchase a whole life annuity due that provides for annual payments of $R1 where R1 is calculated using the 2017 CSO mortality table and i = 3.5%.
$100,000 is used to purchase a 30-year temporary life annuity due that provides for annual payments of $R2 where R2 calculated using the 2017 CSO mortality table and i =3.5%.
$250,000 is used to purchase an ordinary whole life annuity that provides for annual payments of $R3 where R3 is calculated using the 2017 CSO mortality table and i = 3.5%
$250,000 is used to purchase an ordinary whole life annuity that provides for annual payments of $R4 where R4 is calculated using the 2017 CSO mortality table and i = 5.0%
Which of the following statements is true?
A.
R1 > R2 and R3 < R4
B.
R1 < R2 and R3 > R4
C.
R1 < R2 and R3 < R4
D.
R1 > R2 and R3 > R4
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