A retiree has chosen a pension benefit providing an annuity of 20000,
paid annualy at the beginning of the year, payable wile both she and her
spouse are alive. The annual benefity reduces to 15000 after either of
them die, and continues paying until the second death. You may assume
that:
Ux=.04 for the retiree Uy=.06 for the spouse force of int=.08
Determine the actuarial present value of this annuity.
Can anyone help?