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Unformatted text preview: Use p x the values of to estimate μ x . 9. A whole life policy for 50,000 is issued to (65). The death benefit is payable at the end of the year of death. The level premiums are payable for the life of the insured. You are given: a. Mortality follows the Illustrative Life Table. b. i 6%. c. Deaths are uniformly distributed between integer ages. d. The equivalence principle applies. For this life insurance: a. Calculate the level annual net premium payable at the beginning of each year. b. Write an expression for the loss at issue random variable L n c. Calculate the Var[L n ] . d. Calculate the monthly net premium payable at the beginning of each month. Answers: 1. 2019.23 2. 103,990.63 3. 3.77541 4. 4.0014% 5. 0.98220 6. a. 3.66643 b. 3.45057 c. 8.37502 d. 3.16305 e. 119.14 f. 0.00421 7. 612.415 8. a. 75,587.92 b. 75,621.74 9. a. 2221.91 b. L n = 5 0,000 v Kx+1-2221.91 a Kx+1 c. 339,408,907 d. 194.29...
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This note was uploaded on 02/19/2012 for the course STAT 490 taught by Professor Na during the Fall '11 term at Purdue University.
- Fall '11