A3 - ACTSC 232 - Spring 2010 - Assignment 3 Due: Monday,...

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

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ACTSC 232 - Spring 2010 - Assignment 3 Due: Monday, July 26 at 11:30 am 1. Suppose that Makehams law applies with A = 0 . 001, B = 0 . 0007 and c = 1 . 082. Assume also that the effective rate of interest is 6% per year, and = 120. (a) Use Excel (your spreadsheet (or the solutions) from Assignment 2 can be a start) to find the exact values of a x , a (4) x , a (12) x , and a (52) x for x = 50 and 100. You do not have to submit your spreadsheet electronically. (b) Using the two approximations (UDD and simplified), estimate the values of the quarterly, monthly, and weekly annuities for x = 50 and 100. (c) Compare your estimated values to the actual ones. Comment on the differences. 2. (a) Describe the annuity with the following present value random variable: Y = braceleftbigg v T x a n- T x , T x n , T x > n (This is called a Family Income Benefit) (b) Show (carefully) that E [ Y ] = a n- a x : n (c) Explain the answer in (b) by a logical argument....
View Full Document

Page1 / 2

A3 - ACTSC 232 - Spring 2010 - Assignment 3 Due: Monday,...

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

View Full Document Right Arrow Icon
Ask a homework question - tutors are online