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The expected present value of a joint life assurance contract, just issued to lives aged exactly 77 and 78, and paying a sum assured of
The expected present value of a joint life assurance contract, just issued to lives aged exactly 77 and 78, and paying a sum assured of 10 at the end of the subsequent 5-year period if either, or both, lives die during that period. Take the interest rate to be 5% and the death probability = 0.02(t) where t is the time in years
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