Questions 4. Present Value of Result Insureds: We suppose that there are 3 annual premiums: Po, P1, P2, and Po-P=P2=P, the P can be paid when the insured (x) is alive. Insurers: We suppose that the insurer will pay the engagement to the insured (x) in the case where he/she is dead: for insured (x), C1(1)=8000 will be paid when (x) dies at the first year, C1(2)=16 000 will be paid when (x) dies at the second year, C1(3)=24 000 will be paid when (x) dies at the third year. Fixed interest rate is 3% Questions: 1. Please set up the formula to present the present value of result of the insurance company. 2. The following tables shows the survival number, please determine the probably of death, we assume that the Present value is 0, please find the premium. Reminder k-1/1Qx=(lx+k-1-lx+k)/lx qk(formula) qk(value) |Pk-1-qk k=1 k=2 (161-160)/160 0,01565629 0,98434371 |(162-161)/160 0,01659665 0,98313938 k=3 (163-162)/160 0,017537 0,98187853