Consider two people age 40. What is the expected number of years that both are alive?What is the expected number of years that at least one is alive?Show your work in excel to solve the following: What is the actuarial present value of a pension that pays $50,000 per year as long as at least one of the two 40-year-old people survive? Use a 5% discount rate. [Remember actuarial present value means that you must discount in the usual way to get present value, but you also must weight (i.e., multiply) every yearly payment by the probability that at least one of the two 40-year-old people is alive in order to receive the $50,000 payment.] A1 A234562 Age0123748 59 610 711 812 913 1014 1115 1216 1317 1418 1519 1620 1721 1822 1923 2024 2125 2226 2327 2428 2529BB# of Survivors10000099249991939915599126991029908399066990519903599019990019898398963989389890698860987919870098580984449831198163980239788897752DA BAge # of Survivors269762427974892897359299722430970923196954968183233 96677349652235963593696180379599738 957913995569409533741950874294825439454244942294593892469352947931424892713499225450917685191247EFGA5455565758596061626364656667686970717273B #74 75 76 77ВAge # of Survivors5253H9070790127895278883988161873828654285600846548358282458812317992078506769887539173665718306987567824656526333560880583355565552874JKABAge # of Survivors78798081828384858687888990919293949596979899100101102103500014701243928408563756834457311922797524820217661885216113135801127792187412585745463462258618931357953600400200LMA BAge # of Survivors104105106107108109110111NB #1005030157310

Given the table of number of people survived in different ages.

Answered: Consider two people age 40. What is…

(REV)00th Edition

ISBN:9780395977224

Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Chapter2: Working With Real Numbers

Section2.9: Dividing Real Numbers

Problem 8E

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Consider two people age 40.

What is the expected number of years that both are alive?
What is the expected number of years that at least one is alive?
Show your work in excel to solve the following: What is the actuarial present value of a pension that pays $50,000 per year as long as at least one of the two 40-year-old people survive? Use a 5% discount rate. [Remember actuarial present value means that you must discount in the usual way to get present value, but you also must weight (i.e., multiply) every yearly payment by the probability that at least one of the two 40-year-old people is alive in order to receive the $50,000 payment.]