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MATLAB : All computing tasks must be done using MATLAB . Show Your Work : Please show your work, not just the answers 3. Life

MATLAB: All computing tasks must be done using MATLAB.

Show Your Work: Please show your work, not just the answers image text in transcribed

3. Life Annuities and Life Insurance (10 marks) (a) At age 35, David buys a 6-year temporary life annuity of $10,000 per annum to be paid at the beginning of each year for his retire- ment. Find a net single premium for David, if the first payment is made at age 65. Assume that r(t) = 5%. (5 marks) (b) A man currently aged 45 purchases a 5-year term insurance that pays a benefit of $90,000 with r = 4%. Find the net single pre- mium of the death benefit. (5 marks) 3. Life Annuities and Life Insurance (10 marks) (a) At age 35, David buys a 6-year temporary life annuity of $10,000 per annum to be paid at the beginning of each year for his retire- ment. Find a net single premium for David, if the first payment is made at age 65. Assume that r(t) = 5%. (5 marks) (b) A man currently aged 45 purchases a 5-year term insurance that pays a benefit of $90,000 with r = 4%. Find the net single pre- mium of the death benefit

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