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Unformatted text preview: n years if ( x ) is alive then. (a) Show that the premium π = 150. (b) Show that k V = 90¨ s k for k = 1 ,...,n . 5. For a fully discrete 3year term insurance on (60), the death beneﬁt in year h is h 2 for h = 1 , 2 , 3, and the premium in year h is π for h = 1 , 2 , 3. You are given that i = 0 . 05, q 60 = 0 . 15, q 61 = 0 . 20, q 62 = 0 . 30, and . 75 q 61 . 25 = 0 . 18 . (a) Calculate the premium π . (b) Calculate the policy value at the end of the second year. (c) Calculate the policy value at the end of the ﬁrst year. 1 (d) Calculate the policy value at the end of the 15th month. 6. For a fully discrete whole life insurance on (60), you are given (a) 10 V = 0 . 23114 (b) 11 V = 0 . 25540 (c) π 10 = 0 . 03300 Calculate 10 7 12 V under the assumptions of a uniform distribution of deaths between integral ages and i = 0 and q 70 = 0. 2...
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 Fall '09
 david
 Endowment policy, Term life insurance, death beneﬁt, policy value

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