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Ahmet, who is 25 years old now, wants to have a mixed insurance with the following guarantees: $100,000 retirement bonus at age 55, Lifetime death
Ahmet, who is 25 years old now, wants to have a mixed insurance with the following guarantees: $100,000 retirement bonus at age 55, Lifetime death insurance starting with $100,000 and increasing by $10,000 each year, $30,000 pension per year for the first 15 years, depending on living at age 60, $40,000 pension at the beginning of each year for life based on living at age 70. The interest rate is 5% per annum and the CSO Mortality assumption is such an insurance. a) What is the net single premium in dollars? b) What should be the annual premiums if he/she wants to get this insurance for 10 years? c) What is the end of the 5th year reserve of this insurance? d) What is the 15th year-end reserve of this insurance? e) When Ahmet turns 65, if he wants to replace this insurance with lifetime life insurance, how much will his annual pension payments be
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