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Unformatted text preview: of year Profit vector Survival probability Profit signature 1 6695.38 6336.14 359.24 1 359.24 2 7560.11 7485.50 523.98 14547.34 1022.25 0.846455 865.29 3-17753.16 15408.21 1078.57-1266.38 0.799163-1012.04 Cash flow= Premium-Expense+Interest-Expected death cost-Expected surrender cost-Expected maturity cost Reserve at the start of year= 20000*1.06^(t-1)*A 57+t-1:3-(t-1) ┒-Pnet*ä 57+t-1:3-(t-1) ┒ Pnet=20000*A 57:3 ┒ /ä 57:3 ┒ Interest on reserve=Reserve at the start of year*0.07 Reserve at the end of year=(t+1)Reserve at the start of year*survival probability Profit vector=cash flow+Reserve at the start of year+Interest on reserve-reserve at end of year Profit signature= profit vector*survival probability...
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- One '09
- Actuarial Science, Probability theory, Generally Accepted Accounting Principles, Dependent surrender rate=, rate-Dependent surrender rate