document.write( "Question 1173153: 3.A person wants to buy a life insurance policy which would yield a large enough sum of money to provide for 20 annual payments of $50,000 to surviving members of the family. The payments would begin 1 year from the time of death. It is assumed that interest could be earned on the sum received from the policy at a rate of 8 percent per year compounded annually. \n" );
document.write( "(a) What amount of insurance should be taken out so as to ensure the desired annuity? \n" );
document.write( "(b) How much interest will be earned on the policy benefits over the 20-year period? \n" );
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