4. For a fully discrete whole life insurance of 10,000 on (45): (i) Beth net and gross premiums are reduced by half starting with the 21st premium. (ii) Expenses are 50% of premium in the first year, 10% of premium in renewal years. (iii) A45 = 0.15, Ag3 = 0.24, A7s = 0.40 (iv) d = 0.04 %3D %3D %3D

4. For a fully discrete whole life insurance of 10,000 on (45): (i) Beth net and gross premiums are reduced by half starting with the 21st premium. (ii) Expenses are 50% of premium in the first year, 10% of premium in renewal years. (iii) A45 = 0.15, Ag3 = 0.24, A7s = 0.40 (iv) d = 0.04 %3D %3D %3D

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

4. For a fully discrete whole life insurance of 10,000 on (45):
(i) Båth net and gross premiums are reduced by half starting with the 21st premium.
(ii) Expenses are 50% of premium in the first year, 10% of premium in renewal years.
(iii) A45 = 0.15, A95 = 0.24, A75 = 0.40
%3D
(iv) d = 0.04
(v) 20P45 = 0.90
(vi) 30P45 = 0.75
%3D
Calculate the expense reserve at time 30.

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