{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

RelativeResourceManager9

# RelativeResourceManager9 - π 2 upon survival to age...

This preview shows pages 1–6. Sign up to view the full content.

MATH 471: Actuarial Theory I Homework #9: Fall 2009 Assigned October 28, due November 4 1. Assume mortality follows de Moivre’s Law with ω = 110 and d = 0.05. Calculate: (a) ¨ a 45 . (14.36) (b) ¨ a 45: 15 . (9.73) (c) 15 | ¨ a 45 . (4.63) (d) ¨ a 45: 15 . (15.36) 2. Consider a special whole life annuity-due on (x) which pays R at the beginning of the first year, 2 R at the beginning of the second year, and 3 R at the beginning of each year thereafter. You are also given: (i) The APV of this annuity is 3333 (ii) i = 0.05 (iii) p x = 0.98 and p x +1 = 0.97 (iv) ¨ a x +2 = 31.105 Calculate R . (40) 3. Suppose mortality follows the Illustrative Life Table and i = 0.06. Calculate the net single premium, π , for a 35-year temporary life annuity-due issued to (30) with an annual payment of 1000 that pays an additional benefit of

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

View Full Document

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

View Full Document

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.

Unformatted text preview: π 2 upon survival to age 65. (15,641.99) 4. Suppose, at time 0, that: (i) 30 lives age 65 purchase a whole life annuity-immediate with an annual payment of 1 and (ii) 20 lives age 75 also purchase a whole life annuity-immediate with an annual payment of 1. Assume all lives are independent, mortality follows the Illustrative Life Table, and i = 0.06. Let S be the total present value of the payments for all 50 annuities. (a) Calculate E ( S ). (391.25) (b) Calculate var ( S ). (629.58) 5. Using the Illustrative Life Table, the assumption of UDD in each year of age, and i = 0.06, calculate: (a) ¨ a (2) 40 . (14.56) (b) 30 | ¨ a (2) 40 . (1.03)...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• 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.

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

• 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.

Dana University of Pennsylvania ‘17, Course Hero Intern

• 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.

Jill Tulane University ‘16, Course Hero Intern