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Unformatted text preview: ACTSC 232, WINTER 2010 Tutorial 3 – 3:304:20, Monday, February 22, HH 1101 1. A 5year term endowment insurance on (75) pays 2000 at the moment of death if (75) dies during the 5year term and 1200 at the end of the 5year term if (75) is still alive then. Assume that δ = 0 . 03 and l x = 100 x, ≤ x ≤ 100. (a) Write the expression for the present value of the benefits. (b) Calculate the actuarial present value of the insurance. (c) Calculate the variance of the present value of the benefits. (d) Calculate the probability that the present value of the benefits will be between 1700 and 1900. (e) Calculate the probability that the present value of the benefits will be between 900 and 1100. 2. You are given that i = 0 . 03 and De Moivre’s law with ω = 110. Calculate (a) A 1 50: 20 . (b) A 50: 20 . (c) ( IA ) 50 . 3. You are given i = 0 . 05 and the following life table x l x 95 100 96 90 97 50 98 10 99 4 100 (a) Consider a continuous 3year term endowment insurance of 1000 on (95).(a) Consider a continuous 3year term endowment insurance of 1000 on (95)....
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This note was uploaded on 03/20/2011 for the course ACTSC 232 taught by Professor Matthewtill during the Summer '08 term at Waterloo.
 Summer '08
 MATTHEWTILL

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