Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A life aged 45 purchases a fully discrete 20-year endowment insurance with sum insured $100 000. Calculate the annual premium using the equivalence principle and
A life aged 45 purchases a fully discrete 20-year endowment insurance with sum insured $100 000. Calculate the annual premium using the equivalence principle and the following assumptions. 1 Commission is 10% of the first premium and 2% of each subsequent premium. Other expenses are $50 at issue, and $8 at each subsequent premium date. Mortality follows the Standard Ultimate Life Table at i 5%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started