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A contract on (70) provides for a payment of 1000 at the end of 3 years. If (70) is then alive, and is to be
A contract on (70) provides for a payment of 1000 at the end of 3 years. If (70) is then alive, and is to be paid for by three - level annual premiums. For death in the first year, nothing is paid. For death in the 2nd or 3rd years, all premiums paid are returned with interest at the end of the year of death. You are given that q70=0.1, q71=0.2, q73=0.3 and i=25%. Find the annual premium.
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