For both problems #1 and #2 (for the given assumptions) calculate the expected value and standard deviation of the present value of the benefit for the given insurance/annuity. Then also calculate the expected value and variance for 10,000 independent policies.

Assuming that the sum of your 10,000 values for the present value of your benefit are normally distributed calculate a 95% confidence interval for the sum of the present value of benefits. 1.) 30 year term life insurance policy with a face amount of $250,000, paid at the moment of death for a 60 year old male with a constant force of mortality = 0.015 and a constant force of interest of 6%. 2.) Whole life annuity due, with payments of $10,000 at the beginning of each year as long as annuitant is alive for a 60 year old female with a Demoivre distribution for death, a limiting age of 110 and an annual effective interest rate of 6%.