attach files question 3

you are given

mortality follows the illustrative life table

i=0.06

calculate 2A55:10

Actuarial Methods Fall 2013 Prof. Rabinowitz Assignment 5 1. [2004 Nov # 1] For a special whole life insurance on (x) payable at the moment of death, you are given: sh is ar stu ed d vi y re aC s ou ou rc rs e eH w er as o. co m i. x+t = 0.05 . ii. = 0.08 . iii. The death benet at time t is bt = e0.06t , t > 0. iv. Z is the present value random variable for this insurance at issue. Calculate V ar(Z) . A. 0.038 B. 0.041 C. 0.043 D. 0.045 E. 0.048 2. Given i. i = 0.06 . ii. Mortality follows the Illustrative Life table. Calculate A40:20 . 3. [150-S90:26] You are given: i. Mortality follows the Illustrative Life table. Th ii. i = 0.06 . Calculate 2 A55:10 . 2 Hint: You will need to calculate a value for 10 E55 . Look carefully at the denition and you will nd that it can be computed by multiplying 10 E55 by v to the appropriate power. -1- https://www.coursehero.com/file/10283477/assignment5/ Fall 2013 Actuarial Methods Prof. Rabinowitz 4. [CAS3-F03:2] For a special discrete life insurance on (45), you are given: i. i = 0.06 . ii. Mortality follows the Illustrative Life table. iii. The death benet is 1,000 until age 65, and 500 thereafter. sh is ar stu ed d vi y re aC s ou ou rc rs e eH w er as o. co m Calculate the expected present value of the benet payment. A. Less than 100 B. At least 100, but less than 150 C. At least 150, but less than 200 D. At least 200, but less than 250 E. At least 250 5. [CAS-S04:7] A fund is set up to pay a death benet of 10 to each of 1,000 lives age (65). The fund is required to have an 80% chance that it will be able to pay all of its claims. i. Mortality follows the Illustrative Life table. ii. i = 6% . iii. Death benets are payable at the end of the year of death. Using the normal approximation, calculate the initial amount of the fund. Th A. Less than 4,420 B. At least 4,420, but less than 4,430 C. At least 4,430, but less than 4,440 D. At least 4,440, but less than 4,450 E. At least 4,450 -2- https://www.coursehero.com/file/10283477/assignment5/ Powered by TCPDF (www.tcpdf.org)