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2. An insurance company issues a special policy to (45) with the following benefits: A death benefit of 100,000, payable at the moment of death,
2. An insurance company issues a special policy to (45) with the following benefits: A death benefit of 100,000, payable at the moment of death, provided death occurs before age 65. A whole life annuity-due of 25,000 per year starting on the policyholder's 65th birthday. You are also given: (1) Annual level premiums of P are payable for 20 years. (ii) Premiums are determined using the equivalence principle. (iii) Mortality follows the Standard Ultimate Life Table. (iv) i = 0.05 (v) Deaths are uniformly distributed between integer ages. Calculate P. (Round your answer to the nearer multiple of 10.) (A) 9,610 (B) 9,810 (C) 10,010 (D) 10,210 (E) 10,410 2. An insurance company issues a special policy to (45) with the following benefits: A death benefit of 100,000, payable at the moment of death, provided death occurs before age 65. A whole life annuity-due of 25,000 per year starting on the policyholder's 65th birthday. You are also given: (1) Annual level premiums of P are payable for 20 years. (ii) Premiums are determined using the equivalence principle. (iii) Mortality follows the Standard Ultimate Life Table. (iv) i = 0.05 (v) Deaths are uniformly distributed between integer ages. Calculate P. (Round your answer to the nearer multiple of 10.) (A) 9,610 (B) 9,810 (C) 10,010 (D) 10,210 (E) 10,410
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