6. A life aged 50 purchases a 20-year term insurance with $100,000 sum insured. Premiums arepayable annually in advance and death benefits are payable at the end of the year of death.Assume that (i) commission is 12% of the first premium and 4% of each subsequent premium,(ii) other expenses are $100 at issue, $10 at each subsequent premium date, and $200 whenthe sum insured is paid, (i) mortality follows the Standard Ultimate Life Table, and (iv)interest is 5% per year. Calculate the annual premium.

Answered: Image /qna-images/answer/3a9f7e7a-680b-4f8d-90eb-e85ba48ebac0.jpg

Answered: 6. A life aged 50 purchases a 20-year…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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If you wish to retire at age 67 and make $60,000 per year without affecting the principal of your retirement fund, how much do you need to deposit each month starting at age 22 with a fixed APR of 8% both before and after retirement?
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Compute the accumulated value of an annuity immediate that makes semi-annual payments of £500 for 10 years and then it makes annual payments of £1000 for another 10 years.The annual effective rate is 4%.
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Determine the annual insurance premiums for a policy insuring a male age 40 , who wants to purchase a whole life policy with a face value of $50,500
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Ms. Rowel would like to buy a house costing $190000. She is required to make a down payment equalto 10% of the value of the house then borrow the balance from a bank that charges interest at an annualrate of 4.2% compounded monthly. The bank loan has to be paid o§ with equal monthly payments,(paid at the end of each month), in 30 years. Assume that she will get the loan at the beginning of amonth and start making monthly payments on the last day of each month until the loan is paid o§.

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