test2_04sol - ACT348F TERM TEST 2 Print your name and...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACT348F - TERM TEST 2 - NOVEMBER 18, 2004 Print your name and student number clearly on each page This is a closed book test . Do all work on this question paper, with work for question 1 on this page (use both sides if necessary), work for question 2 on the next page, etc. All calculations should be done to . Answers are expected to have at least 4 digit accuracy. at least 6 digit accuracy 1. A fully discrete 2-year endowment insurance issued at age has a B death benefits defined as follows : . , œ &!!  Z ß , œ "!!!  Z " " # # The endowment benefit paid to survivors at age is 1500. B  # You are given that the annual effective interest rate is , and . 3 œ Þ# ; œ Þ#& ß ; œ Þ& B B" 4 (a) Show that the annual benefit premium for the policy is 814 (nearest $1) . 4 (b) Find and using the recursive reserve formula. " # Z Z Hint: For the premium use 7 B5 5" 5" 7l 5œ! 7" 75" Z œ † = ; † Ð"  3Ñ † Ð, Z Ñ ÞÞ 1 ± Solution: (a) "&!! œ Z œ † = ; † Ð"Þ#Ñ † Ð, Z Ñ ÞÞ # B5 5" 5" #l 5œ!
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern