3. You are given (i) Z = 1,000vK30+1, 2,000v K30+1, K30 = 0, 1, 2,...,9 K30...
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3. You are given (i) Z₁ = 1,000vK30+1, 2,000v K30+1, K30 = 0, 1, 2,...,9 K30 > 10 (ii) Z₂ = - 50TV, Tz < 20 TT > 20 1,000, (a) Describe in words the insurance benefits with the present values given above. (b) Find expressions (in terms of the standard actuarial notations) for the expected value of Z₁ and Z2, respectively. (c) If i = 0.05 and the mortality follows the LTAM Standard and Ultimate Life Table, calculate the expectation of Z₁. (d) If 8 = 0.06 and the force of mortality 0.03 for all a > 0, calculate the expectation of Z2. 3. You are given (i) Z₁ = 1,000vK30+1, 2,000v K30+1, K30 = 0, 1, 2,...,9 K30 > 10 (ii) Z₂ = - 50TV, Tz < 20 TT > 20 1,000, (a) Describe in words the insurance benefits with the present values given above. (b) Find expressions (in terms of the standard actuarial notations) for the expected value of Z₁ and Z2, respectively. (c) If i = 0.05 and the mortality follows the LTAM Standard and Ultimate Life Table, calculate the expectation of Z₁. (d) If 8 = 0.06 and the force of mortality 0.03 for all a > 0, calculate the expectation of Z2.
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a Z1 describes an insurance benefit that pays 1000 if the insured s... View the full answer
Related Book For
Introduction To Derivatives And Risk Management
ISBN: 9781305104969
10th Edition
Authors: Don M. Chance, Robert Brooks
Posted Date:
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