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Please answer in excel. Please consider the interest rate of 5%. Thank You Interest rate On 1st January 2001 an insurance company issued the following
Please answer in excel. Please consider the interest rate of 5%. Thank You
Interest rate On 1st January 2001 an insurance company issued the following policy to policyholders age 40 exact: - a 20 year without-profit endowment assurance with death benefit of $50,000 payable at the end of year of death; - level premiums are paid annually in advance for up to 20 years and payment will cease on the policyholder's death. The mortality rates and interest rate assumed are given in the worksheet named q1_data. The number of policies in existence at the start of each calendar year are also included in the worksheet named q1_data. The reduction in policyholders is entirely due to deaths. (i) Compute the mortality gains or losses in each calendar year. [13 minutes] (ii) Was the mortality assumption an accurate reflection of actual experience? Explain your answer. (No further calculations are needed.) [2 minutes] (iii) Explain why the mortality profit / loss experienced identified from this analysis contributed to the insurance company's expected profits or losses. (No further calculations are needed.) [2 minutes]Step by Step Solution
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