In this question, we consider a continuous n-year endowment contract. The benefit is payable at the moment of death if death occurs within n years. Otherwise, the benefit is payable at the end of the term (n years).

Suppose that

• i = 0.05
• Z is the p.v.r.v. of a (continuous) 5-year endowment contract sold to (60)
• The benefit of the endowment contract is 1000.
• Mortality follows the Illustrative Life Table (You can download this table from Files/SoA-LATM-standard-ultimate-life-table.pdf).

Use UDD approach to approximate the actuarial expected value of this contract.

0.05 0.05