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a [ 6 marks ] A male life aged 5 5 exact and a female life aged 5 3 exact purchased a 2 0 -

a[6 marks] A male life aged 55 exact and a female life aged 53 exact purchased a 20-year joint life term assurance. The policy pays a sum assured of e150,000 payable at the end of the year of the first death if it occurs within the policy term. Calculate the expected present value of the death benefit given that the interest rate is 4% per annum and from the PMA92C20 and PFA92C20 tables note a 55:53=16.284, a 75:73=7.975 and v20p55:53=0.353725. b) A life insurance company issues a reversionary annuity policy to a male aged 55 exact and a female aged 53 exact. The annuity of e70,000 per annum payable monthly in arrears com- mences if the male dies first and payments cease on the death of the female or on the 20th anniversary of the policy inception if ear- lier. Calculate (with the usual assumptions) the single premium of the policy given that the interest rate is 4% per annum and note the information in (a) and also from the PFA92C20 tables note a 53=18.768, a 73=11.734 and 20p53=0.91334.

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