A certain policy issued at age 28 provides for the following schedule of payable amounts: Benefits (RM) Year 1 2 3 4 5 6-12 13 14 15 16 17 Death 10,000 8,000 6,000 4,000 2,000 1,000 5,000 10,000 15,000 20,000 Survival - - - - - 10,000 Assume premiums are payable at the beginning of each year, death benefits are payable at the end of year of death and survival benefit is payable upon reaching the maturity age. a) Write the commutation functions for the above policy if a person purchased the policy by semi-annual premium payable for ten years. b) Find the semi-annual premium payment for question 3(a) above.
A certain policy issued at age 28 provides for the following schedule of payable amounts: Benefits (RM) Year 1 2 3 4 5 6-12 13 14 15 16 17 Death 10,000 8,000 6,000 4,000 2,000 1,000 5,000 10,000 15,000 20,000 Survival - - - - - 10,000 Assume premiums are payable at the beginning of each year, death benefits are payable at the end of year of death and survival benefit is payable upon reaching the maturity age. a) Write the commutation functions for the above policy if a person purchased the policy by semi-annual premium payable for ten years. b) Find the semi-annual premium payment for question 3(a) above.
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 1E: An annuity is a sum of money that is paid in regular equal payments. The __________ of an annuity is...
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RM is currency similar to USD
![A certain policy issued at age 28 provides for the following schedule of payable amounts:
Benefits (RM)
Year
1
2
3
4
5
6-12
13
4567
14
15
16
17
Death
10,000
8,000
6,000
4,000
2,000
1,000
5,000
10,000
15,000
20,000
Survival
-
10,000
Assume premiums are payable at the beginning of each year, death benefits are payable at
the end of year of death and survival benefit is payable upon reaching the maturity age.
a) Write the commutation functions for the above policy if a person purchased the policy by
semi-annual premium payable for ten years.
b) Find the semi-annual premium payment for question 3(a) above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff93fb7e-2386-42b7-a9ef-797426898aa5%2F009df8cf-2134-4498-8098-240e479363ca%2Fl5atmy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A certain policy issued at age 28 provides for the following schedule of payable amounts:
Benefits (RM)
Year
1
2
3
4
5
6-12
13
4567
14
15
16
17
Death
10,000
8,000
6,000
4,000
2,000
1,000
5,000
10,000
15,000
20,000
Survival
-
10,000
Assume premiums are payable at the beginning of each year, death benefits are payable at
the end of year of death and survival benefit is payable upon reaching the maturity age.
a) Write the commutation functions for the above policy if a person purchased the policy by
semi-annual premium payable for ten years.
b) Find the semi-annual premium payment for question 3(a) above.
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