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Assume an interest rate of 6%. A life currently aged 58 has the following survival function: So(t) = (0.99)2t 0t 120 A 20-year term
Assume an interest rate of 6%. A life currently aged 58 has the following survival function: So(t) = (0.99)2t 0t 120 A 20-year term life insurance policy is issued to this individual with premiums, P, paid continuously throughout the term and a benefit of 120,000 paid at the moment of death. Find P if it is calculated following the equivalence principle.
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