Question
A fully discrete 3-year temporary annuity immediate of 1000 with true semiannual payment is issued to (91.5). You are given that k 0 1 2
A fully discrete 3-year temporary annuity immediate of 1000 with true semiannual payment is issued to (91.5). You are given that
k 0 1 2 3 4 5 6 7. 8. 9
k|q90 0.05 0.1 0.1 0.15 0.15 0.1 0.1 0.1 0.1 0.05
and d = 10%
(a) Define the present value random variable Y .
(b) Find the actuarial present value of this annuity under UDD.
(c) Determine the second moment of Y assuming constant force.
(d) Determine Pr [Y E[Y ]] under UDD.
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Management
Authors: Schermerhorn, John, Davidson, Paul, Factor, Aharon, Woods, Peter, Simon, Alan, McBarron, Ellen
6th Asia Pacific Edition
9780730329534
