Chapter 5

# Chapter 5 - Use p x the values of to estimate μ x . 9. A...

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Chapter 5 1. You are given that a continuous whole life annuity to (50) pays at a rate of 100 per year for the first 20 years and 500 per year thereafter. Calculate the actuarial present value if mortality follows the Illustrative Life Table with i = 0.06 . 2. Peter retires from Purdue at age 60. He receives a monthly pension of 800 per month. The payments are guaranteed for 5 years. Your are given: a. Mortality follows the Illustrative Life Table b. i 6% Calculate the present value of Peter’s retirement benefit. 3. Mortality follows the Illustrative Life except for age 90. For age 90, q 90 = 0.15 . Calculate a 90 at i = 0.06. 4. Problem 5.3 in the book. 5. Problem 5.4 in the book. 6. Problem 5.5 in the book. 7. You are given: i. a x 9 ii. A x = 0.6 iii. Deaths are uniformly distributed between integral ages. Calculate 1000A x . 8. Your boss has asked you to use the Illustrative Life Table with interest at 6% to estimate 100,000A 85 a. Determine an estimate assuming UDD.

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b. Determine an estimate using Woolhouse’s formula.
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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.

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Chapter 5 - Use p x the values of to estimate μ x . 9. A...

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