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At issue, a fully-continuous whole life insurance policy with benefit $10,000 is issued to a life age (x). The premium is calculated as 5% more
At issue, a fully-continuous whole life insurance policy with benefit $10,000 is issued to a life age (x). The premium is calculated as 5% more than determined by the equivalence principle. After 15 years, a new mortality study is completed and finds that the force of mortality has decreased by 10%. Assuming the force of interest is constant at 5%, use the premium difference approach to calculate 15V in terms of
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