Can anyone help me understand this? I feel like the information is not matching up I may be wrong just wanted a second pair of eyes. Thanks in advance!!
Practice Question definition:
Textbook definition:
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Hi, I’ve reviewed these snippets, and they look accurate to me!
I’m happy to clarify - which part feels like it doesn’t match up?
Thanks for the quick reply, Justin. I feel like the question’s definition is saying that if the person dies before the 10 year the beneficiary gets payment for 10 years. However the textbook says if the person dies before 10 years the beneficiary will get 2 years of payment. I may just be having a brain fart moment, running on 8 hours of sleep between a two day period lol.
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It’s just different ways of saying the same thing!
A 10-year period certain means at least 10 years of payments.
- In the first example, the customer receives 2 years of payments while alive, and payments will continue to be made for another 8 years, for 10 years total
- In the second example, the customer receives 8 years of payments while alive, and payments will continue to be made for another 2 years, for 10 years total
Thank you for your explanation.
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