{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ACTSC232-Tut4

ACTSC232-Tut4 - assumption calculate E Z 4 Z 1 is the PV of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ACTSC 232 Introduction to Actuarial Mathematics Tutorial 4, Winter 2012 1. Assume the force of mortality satisfy De Moivre’s Law with ω = 100, that is μ x = 1 100 - x , for 0 x < 100. Let i = 0 . 05, calculate (a) A (2) 50 (b) A (2) 1 50: 20 2. Given that ¯ A 20 = 0 . 35, ¯ A 40 = 0 . 55, ¯ A 20: 20 = 0 . 485, 2 ¯ A 20 = 0 . 2, 2 ¯ A 40 = 0 . 32, and i = 0 . 04. Calculate (a) A 1 20: 20 (b) ¯ A 1 20: 20 (c) 2 ¯ A 20: 20 3. For a 20-year term life insurance issued to (30), $1,000,000 will be paid at the end of the death year. Let Z be the present value of this insurance benefit. Using the SOA illustrative life table, calculate (a) E [ Z ] (b) V ar ( Z ) (c) If the death benefit is paid at the end of the death month, under the UDD fractional age
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: assumption, calculate E [ Z ]. 4. Z 1 is the PV of a continuous n-year term insurance benefit, issued to ( x ). Z 2 is the PV of a continuous whole life insurance benefit, issued to the same life. What is the covariance of Z 1 and Z 2 ? Express in actuarial functions, simplified as far as possible. 5. (a) Show that ( IA ) 1 x : n = vq x + vp x ± ( IA ) 1 x +1: n-1 + A 1 x +1: n-1 ² (b) You are given that ( IA ) 50 = 4 . 99675, A 1 50: 1 = 0 . 00558, A 51 = 0 . 24905 and i = 0 . 06. Calculate ( IA ) 51 1...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online