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A temporary annuity of 3,000 pa payable annually in arrears for a term of 10 years was purchased one year ago by a life then
A temporary annuity of 3,000 pa payable annually in arrears for a term of 10 years was purchased one year ago by a life then aged exactly 60 by the payment of a single premium. Show algebraically that the current retrospective and prospective gross premium reserves are equal, assuming that the pricing and reserving bases are the same. The company assumes that each policy incurs initial expenses of 200 and annual expenses of 1.5% of each annuity payment
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