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1. You are given the following select and ultimate table. [2] 90+1 9[z]+2 9:1-3 x+3 71 0.10 0.16 0.22 0.28 74 72 0.15 0.21 0.27
1. You are given the following select and ultimate table. [2] 90+1 9[z]+2 9:1-3 x+3 71 0.10 0.16 0.22 0.28 74 72 0.15 0.21 0.27 0.33 75 73 0.20 0.26 0.32 0.38 76 74 0.25 0.31 0.37 0.43 77 75 0.30 0.36 0.42 0.48 78 76 0.35 0.41 0.47 0.53 79 77 0.40 0.46 0.52 0.58 80 A client of age 73 was provided 5 years of insurance 2 years ago. The insurance pays $200,000 at the end of the year of death if they die before age 76. They would now like to purchase additional insurance to extend that insurance benefit to provide that same coverage if they die before age 80. What is the expected present value of that additional coverage? (in your answer, also provide the appropriate actuarial notation for the quan- tity that you are solving for). The annual effective interest rate is 5%. 1. You are given the following select and ultimate table. [2] 90+1 9[z]+2 9:1-3 x+3 71 0.10 0.16 0.22 0.28 74 72 0.15 0.21 0.27 0.33 75 73 0.20 0.26 0.32 0.38 76 74 0.25 0.31 0.37 0.43 77 75 0.30 0.36 0.42 0.48 78 76 0.35 0.41 0.47 0.53 79 77 0.40 0.46 0.52 0.58 80 A client of age 73 was provided 5 years of insurance 2 years ago. The insurance pays $200,000 at the end of the year of death if they die before age 76. They would now like to purchase additional insurance to extend that insurance benefit to provide that same coverage if they die before age 80. What is the expected present value of that additional coverage? (in your answer, also provide the appropriate actuarial notation for the quan- tity that you are solving for). The annual effective interest rate is 5%
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