Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using AM92 and an interest rate of 6% p.a., evaluate or approximate the following, showing all working. Assume ultimate mortality unless directed otherwise. Round your

image text in transcribed
Using AM92 and an interest rate of 6% p.a., evaluate or approximate the following, showing all working. Assume ultimate mortality unless directed otherwise. Round your answers to 5.d.p or to the nearest cent for dollar values. a) The probability that a life aged 50 dies between age 60 and 65 . (2 marks) b) The probability that a life aged 30.3 who was select at age 30 dies in the next 1.5 years, assuming a constant force of mortality. (4 marks) c) The expected present value and standard deviation of the present value of a whole life annuity of $100 payable annually in arrears to a select life aged 37 . (5 marks) d) The expected present value of a $100,000, ten-year endowment insurance payable immediately on death to a life aged 55 . (4 marks) e) The expected present value of a whole of life annuity of $5000 per annum payable monthly in arrears to a life aged 65. (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Anthony Saunders, Marcia Cornett

7th Edition

1259919714, 978-1259919718

More Books

Students also viewed these Finance questions

Question

Many different people can conduct performance appraisals.

Answered: 1 week ago