Calculating Disability Assistance: Brandon & Eileen (Quiz 38.3)

Hi guys,

I am stuck on this question calculating disability benefit. I am able to PV the benefit for Brandon [N = 10, PMT = 30, I/Y = 0.98] but I cannot seem to calculate the right benefit for Eileen. I am also confused as the growth rate exceeds the risk free rate so I am getting a negative number. Any ideas?

I don’t have access to the question, but you can let the rate go negative! Set I = (RF rate - growth rate)/(1+growth rate).

thanks ill try this!