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(30 points) (50) purchased a whole life insurance policy that pays $200,000 if death from an accident and $80.000 if death is due to other
(30 points) (50) purchased a whole life insurance policy that pays $200,000 if death from an accident and $80.000 if death is due to other causes. You are given: (i) Death benefit is payable at the moment of death. (ii) u 50% = 0.001 for accidental deaths and all t > 0. (iii) u 52 = 0.02 for non-accidental deaths and all t > 0. (iv) 8 = 0.07. Calculate the actuarial present value of the benefit of this policy. (30 points) (50) purchased a whole life insurance policy that pays $200,000 if death from an accident and $80.000 if death is due to other causes. You are given: (i) Death benefit is payable at the moment of death. (ii) u 50% = 0.001 for accidental deaths and all t > 0. (iii) u 52 = 0.02 for non-accidental deaths and all t > 0. (iv) 8 = 0.07. Calculate the actuarial present value of the benefit of this policy
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