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Insurance related question. i would like an in dept explanation and detailed calculation thank you. Sam, who just had his 57th birthday, has the following
Insurance related question. i would like an in dept explanation and detailed calculation thank you.
Sam, who just had his 57th birthday, has the following probability of death in each year: Given an annual interest rate of 3%. a) Calculate the single premium of a two-year term insurance with $1,000,000 face amount for Sam. b) Calculate the premium of a two-year endowment policy with $1,000,000 face amount for Sam. c) Suppose that Sam just reached age 59 and wanted to purchase a life immediate annuity that pays him $150,000 each year, starting from his 60th birthday until his death. Calculate the amount that Sam should pay to purchase this annuity Step by Step Solution
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