1. a19=25.04
2. a20=24.85
3. i=0.03

Calculate p19.

An insurer offers a three-year warranty for a certain piece of equipment.

12. A premium payment for the warranty is made at the start of each year.
13. All premium payments are the same.
14. Once the machine breaks, a benefit payment is made at the end of that year and the policy is cancelled (no further payments, neither premium nor benefit, are made).

Agex Probability of breakdown qx Year-end Benefit Payment

0 10% 100

1 20% 100

2 20% 50