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Unformatted text preview: ACTUARIAL SCIENCE 331 ASSIGNMENT #2 FALL 2007 This assignment consists of two parts. The first part requires that you do calculations of premium and reserves and related quantitites. The second part consists of 5 mathematical excercises. For each of these exercises, pepare a written solution. PART 1 (50%) For the purpose of the calculations, you should use the same mortality table as for Assign- ment #1 with an interest rate of 5% per year. All this work should be done on a spreadsheet such as Excel. Consider an endowment insurance to age 75 life insurance policy. The policy pays a death benefit at the end of the year of the death. The benefit amount begins at $100,000 and increases on birthdays that are a multiple of 5 (e.g. 40, 45, 50) by $10,000. The survival benefit at age 75 is the same as the death benefit payable at age 75. The premium is paid at the beginning of each policy year. The premium increases at a rate of 4% each year and is based on the equivalence principle....
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This note was uploaded on 10/30/2009 for the course ACTSC 331 taught by Professor David during the Spring '09 term at Waterloo.
- Spring '09