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Mr. Frank Lampard aged exactly 40 purchases a whole life assurance policy with a sum assured of 100,000 payable immediately on death. (i) Show

Mr. Frank Lampard aged exactly 40 purchases a whole life assurance policy with a sum assured of 100,000 payable immediately on death. (i) Show that the variance of this random variable is 100,000 (40 - 440). (5 marks) [11] Calculate the variance of the present value of the benefits from this assurance policy, assuming Standard Ultimate Life Table and 5% pa interest. (5 marks)

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