Assignment 3

# Assignment 3 - FIN 3220A Actuarial Models I First Term...

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

1 FIN 3220A Actuarial Models I First Term 2005-2006 Assignment 3 Hand in the solutions on or before 16 November 2005. 1. A 3-year life annuity-due to ( x ) is defined by the following table: Year t Amount of Payment p x + t 0 1 0.80 1 2 0.75 2 3 0.50 You are given that v = 0.9 and that the expected present value of the payments is K . Calculate the probability that the present value of the payments actually made will exceed K . 2. For a 3-year temporary life annuity-due on (30), you are given: () 1 , 0 80. 80 x sx x =− ≤ ≤ i = 0.05. 1 3 0,1,2, 3, 4,5, K aK Y + = = = ±± . Calculate Var( Y ). 3. You are given: ( ) 4 17.287. a = 0.1025. x A = Deaths are uniformly distributed over each year of age. Calculate ( ) 4 x a . 4. Denote Z as the present value random variable for a special benefit on (30). This benefit provides the following: A life income of 1,000 per year payable continuously while (30) survives. An insurance of 5,000 payable at the moment of death of (30).

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.

## This note was uploaded on 05/21/2011 for the course FIN 3220 taught by Professor Cswong during the Spring '05 term at CUHK.

### Page1 / 2

Assignment 3 - FIN 3220A Actuarial Models I First Term...

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

View Full Document
Ask a homework question - tutors are online