2. Consider a unit-linked insurance with a term of 30 years. The life is currently aged 40 (at the start of the policy). The benefit is paid immediately upon death or at the end of the term. The size of the benefit is the value of the unit fund at the time of payment subject to a guarantee that the policyholder is paid a minimum of £100, 000. The yearly premium is an integer value per year paid continuously (until payment of the benefit). Let Yt 900 be the fraction of the premiums invested in the cash fund at time t.
2. Consider a unit-linked insurance with a term of 30 years. The life is currently aged 40 (at the start of the policy). The benefit is paid immediately upon death or at the end of the term. The size of the benefit is the value of the unit fund at the time of payment subject to a guarantee that the policyholder is paid a minimum of £100, 000. The yearly premium is an integer value per year paid continuously (until payment of the benefit). Let Yt 900 be the fraction of the premiums invested in the cash fund at time t.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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R language,please quickly thanks !
Transcribed Image Text:2.
Consider a unit-linked insurance with a term of 30 years. The life is currently aged 40 (at
the start of the policy). The benefit is paid immediately upon death or at the end of the term. The
size of the benefit is the value of the unit fund at the time of payment subject to a guarantee that the
policyholder is paid a minimum of £100,000. The yearly premium is an integer value 7 per year paid
continuously (until payment of the benefit). Let
t²
900
be the fraction of the premiums invested in the cash fund at time t.
Yt
Transcribed Image Text:Let the yearly premium 7 be calculated based on the usual equivalence principle
V30+ U30 = 100, 000. By solving the ODEs numerically using R, find the value of T. The correct
value is approximately equal to an integer value, which is the value you should state (no need to
worry about decimals). Finally, plot the solutions V, and Ut for the value of that you find.
Hint: the correct solution is somewhere between 800 and 1000. You need to find V30 and U30 for
a range of values of T and confirm what value of leads to V30+ U30 = 100,000 (approximately).
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