Question: 3.10. Find the present value of a 10 year temporary insurance issued to a life aged 40 with a death benefit of $2000 payable at

3.10. Find the present value of a 10 year temporary insurance issued to a life aged 40 with a death benefit of $2000 payable at the moment of death. Also, obtain the standard deviation of the insurance. Use a 6% annual interest rate.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Development An Introduction Questions!

Joe Schreiner, controller for On Time Clock Company Inc., recently prepared the company?s income statement and statement of changes in equity for 2020. Schreiner believes that the statements are a...

Kindly answer in details with clear working Exercises 4.1 The following is an extract from a life table with a select period of 1 year. Age r age r + 1 55 90. 636 00.032 56 56 89. 739 89, 132 57 88,...

1.3. An insurance issued to a life aged 40 provides a death benefit of $5000. Express the cash flow in the form of C(t*,t) and the present value of the cash flow at the commencement of the insurance...

help! 3. Let 21 denote the present value of a 10-year term insurance benet issued to a life aged 45. Let 22 denote the present value of a whole life insurance benefit issued to the same life. Use the...

1. Calculate (2) (i) a[50]: 201 (4) [33]: 23 (ii) Basis: Mortality: AM92 Interest: 6% per annum 2. For a whole life assurance of 1 issued to a life aged with death benefits payable at the moment of...

Show your work (i) Stating clearly any assumptions you make, carry out statistical tests to determine whether, for the population being studied: (a) individuals under 40 watch more television on...

Answer the questions below (i) (a) Define a Poisson process with rate 1. (b) Define a compound Poisson process. [2] (ii) The cumulative amount of claims reaching an insurance company is modelled...

Answer the questions below where Pr is the prot at time 0 and Pr}; (t = 1, 2, . . ., 5) is the prot at time I per policy in force at time t 1. The survival model used in the prot test is given by...

An insurer issues a whole life insurance policy to a life aged 40. The death benefit in the first three years of the contract is $1000. In subsequent years the death benefit is $50 000. The death...

Using the 3-term Woolhouse's Formula, calculate (5 decimals) the Expected Present Value of a 20-Year Term Insurance issued to a life aged 40. The death benefit is paid at the time of death. The...

1.6. An insurance issued to a life aged 30 pays a death benefit of $2000 at the end of the year of death, if death occurs between the ages of 30 and 31. A death benefit of $1500 is paid at the end of...

12. Winslow Windows manufactures custom windows for high rise buildings and employs a job-order costing system. During June, Winslow's transactions and accounts included the following: Raw materials...

Imagine that you work in the HR department. Your boss mentioned that employee performance had decreased significantly during the last six months. He asked you to find out the reasons for this problem...

PLEASE ANSWER ASAP I WILL LEAVE THUMBS UP If a question has meltiple parts, afl of its parts comprise ONE question. SHOW YOUR WORK. Partint eredit depends on the quality of work shown. All bond...

Server farms such as Google and Yahoo! provide enough compute capacity for the highest request rate of the day. Imagine that most of the time these servers operate at only 60% capacity. Assume...