# test2_03 - ACT348F - TERM TEST 2 - NOVEMBER 19, 2003 Print...

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

ACT348F - TERM TEST 2 - NOVEMBER 19, 2003 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 equal B death benefit to Terminal Reserve: . The endowment "!!!  , œ "!!!  Z ß , œ "!!!  Z "" ## benefit paid to survivors at age is 2000. You are given that the annual effective B# interest rate is , and . 3 œ Þ# ; œ Þ#& ß ; œ Þ& BB " 4 (a) Show that the annual benefit premium for the policy is (nearest \$1) . "!'" 4 (b) Find and using the recursive reserve formula. "# ZZ Solution: (a) ¨ 1 +œF † @ ;  @Z 8l 2œ! 8" 2" 8 B2 8 ± p Ð"  @Ñ œ "!!!Ð@;  @ ; Ñ  #!!!@ p "Þ)\$\$\$ œ "*%%Þ%& p œ "!'!Þ'\$ 11 1 " . (b) 1 Ð"  3Ñ  Ð,  Z Ñ; œ Z ß B " p "!'!Þ'\$Ð"Þ#Ñ  Ð"!!!  Z  Z ÑÐÞ#&Ñ œ Z ß " p "!##Þ(' œ Z " .

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 09/27/2009 for the course ACT 348 taught by Professor Broverman during the Fall '04 term at University of Toronto.

### Page1 / 3

test2_03 - ACT348F - TERM TEST 2 - NOVEMBER 19, 2003 Print...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online