Answered step by step
Verified Expert Solution
Question
1 Approved Answer
For a fully continuous 20-year term annuity on (x) you are given: The annuity payment is 100 per year. The force of interest is &z
For a fully continuous 20-year term annuity on (x) you are given: The annuity payment is 100 per year. The force of interest is &z = 0.03 for t2 0. The force of mortality is Ux+t (0.01, 0 10 Y is the present value of annuity payments for this policy. Ty is the future lifetime of (x). . (a) Express Y in terms of Tg. Plot Y against Tx, label the key values. (6) Calculate Pr(Y > E[Y]). P, the single premium for this annuity, is equal to the 65th percentile of Y. (0) Determine P. For a fully continuous 20-year term annuity on (x) you are given: The annuity payment is 100 per year. The force of interest is &z = 0.03 for t2 0. The force of mortality is Ux+t (0.01, 0 10 Y is the present value of annuity payments for this policy. Ty is the future lifetime of (x). . (a) Express Y in terms of Tg. Plot Y against Tx, label the key values. (6) Calculate Pr(Y > E[Y]). P, the single premium for this annuity, is equal to the 65th percentile of Y. (0) Determine P
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started