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For a group of 100 lives age x with independent future lifetimes, you are given: (i) Each life is to be paid 1 at the
For a group of 100 lives age x with independent future lifetimes, you are given: (i) Each life is to be paid 1 at the beginning of each year, if alive. (ii) Ax=0.45 (iii) 2Ax=0.22 (iv) i=0.05 (v) Y is the present value random variable of the aggregate payments. Using the normal approximation to Y, calculate the initial size of the fund needed in order to be 95% certain of being able to make the payments for these life annuities. 1,1701,1801,1901,2001,210
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