Question
For a new type of 3 year term insurance for a person age 50, consider the following information: The 10,000 death benefit is paid at
For a new type of 3 year term insurance for a person age 50, consider the following information:
The 10,000 death benefit is paid at the end of the year of death.
The annual effective interest rate is 4%
The premium for each of years 1 and 2 is half the premium in 3 years
Premiums are calculated using the equivalence principle
The mortality table has the following values:
x qx
50 0.05
51 0.06
52 0.07
53 0.08
Calculate the reserve at the end of year 2
which part isn't clear to you for me to explain it better?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Calculate the Annual le and Reserve at and of Year 2 ...
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Step: 2
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
