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Question A $100,000 whole life policy is issued to a life aged 25 for a single premium due at issuance. Assume the force of mortality is a constant μ = 0.005 and the force of interest is d = 0.10. The death benefit is paid at the time of death. What is the actuarial present value of the above policy? Possible Answers A < $3,500 B > $3,500 but < $4,000 c> $4,000 but < $4,500 D≥ $4,500 but < $5,000 E > $5,000 Question A $100,000 whole life policy is issued to a life aged 25 for a single premium due at issuance. Assume the force of mortality is a constant μ = 0.005 and the force of interest is d = 0.10. The death benefit is paid at the time of death. What is the actuarial present value of the above policy? Possible Answers A < $3,500 B > $3,500 but < $4,000 c> $4,000 but < $4,500 D≥ $4,500 but < $5,000 E > $5,000
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Related Book For
Intermediate Microeconomics and Its Application
ISBN: 978-0324599107
11th edition
Authors: walter nicholson, christopher snyder
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