Calculate the value of an annuity with uncertain duration: it will pay $1000 every year for either 5 years, 10 years; or 15 years with equal probability. Assume the discount factor is /3 = 0.9 and the...

Calculate the value of an annuity with uncertain duration: it will pay $1000 every year for either 5 years, 10 years; or 15 years with equal probability. Assume the discount factor is /3 = 0.9 and the decision maker is a delta person with risk tolerance equal to

i. p = 5000

ii. p = 10,000

Repeat Problem I for a logarithmic decision maker with initial wealth

i. vv = 5000

ii. w = 10,000

Calculate both the PIBP and also the PISP if he owned it at this initial wealth.