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A survival model is given by the survival function S0(x)=(1x125)3/13. Suppose a whole life insurance policy with a benefit of $38500 payable at the end
A survival model is given by the survival function S0(x)=(1x125)3/13. Suppose a whole life insurance policy with a benefit of $38500 payable at the end of the year of death has an effective annual interest rate of 0.035 (i.e., i = 3.5%). (a) What is the present value for the benefit if the policy is purchased at age 80
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