Extra #3: In the Permanent Disability Model, assume constant forces of transition = 0.05, 42 = 0.01 and 42 = 0.12. Premiums are paid continuously in state O. Benefits are a continuous $50,000 per year in state 1. If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state O. c) The benefit reserve 50 years after the issue of the policy on an individual in state 1. Extra #3: In the Permanent Disability Model, assume constant forces of transition = 0.05, 42 = 0.01 and 42 = 0.12. Premiums are paid continuously in state O. Benefits are a continuous $50,000 per year in state 1. If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state O. c) The benefit reserve 50 years after the issue of the policy on an individual in state 1