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

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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 " .
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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.

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

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