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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 annuityimmediate with an annual payment of 1 and (ii) 20 lives age 75 also purchase a whole life annuityimmediate 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)...
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This note was uploaded on 02/14/2011 for the course MATH 471 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.
 Spring '08
 Staff
 Math

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