"PURE ENDOWMENT, STATISTICAL PROBABILITY. A pure endowmwnt is a promise to pay a fixed sum SUM$ to an individual at some future date provided he is alive to collect it. PLIV4 is the probability of receiving that SUM$ at NEXTAGE in years from the present AGE in years. If money earns a simple annual rate of ANNRATE% with a compounding period CMPERIOD in months, CMPERIOD= 1 for monthly, =3 for quarterly, =6 for semiannually, =12 for yearly, then PRESVALU is the present value of the expectation EXPECT$ in NUMYEARS from today. EFFRATE% is the effective or yearly rate percent for money. Based on 1941 CSO Mortality table. *** Answers to problems *** (c) Copyright PCSCC Inc., 1993 (a) Set AGE=9, ANNRATE%=7, CMPERIOD=12, NEXTAGE=65, SUM=1,000,000. The present value is PRESVALU=$13,398.31. Type any key to exit. ||Mrs. Murphy wants to establish a pure endowment of $1,000,000 for her daughter Melanie now age 9 payable if and when she attains the age of 65. (a) If money is worth 7% effective, find the present value. Type comma key to see answers. Type (F2) to return to helpfile."
