Question 2 [Variation on150 - 81 - 94:44] You are given a deferred temporary life annuity on (57) (i) = 0.04 for all ages (ii) 8 = 0.06 (iii) The premiums are payable at the beginning of each year for the first 5 years using the equivalence principle. (iv) Annuity benefits are paid at the beginning of the year (v) Year 1 2 3 4 5 6 7 8 9 or later 0 0 0 100 80 60 40 20 0 Annuity Benefit a) Calculate the reserves at the end of year 4 b) Find the Variance of the Loss at the end of year 6 Question 2 [Variation on150 - 81 - 94:44] You are given a deferred temporary life annuity on (57) (i) = 0.04 for all ages (ii) 8 = 0.06 (iii) The premiums are payable at the beginning of each year for the first 5 years using the equivalence principle. (iv) Annuity benefits are paid at the beginning of the year (v) Year 1 2 3 4 5 6 7 8 9 or later 0 0 0 100 80 60 40 20 0 Annuity Benefit a) Calculate the reserves at the end of year 4 b) Find the Variance of the Loss at the end of year 6