A fully discrete 20 - year endowment insurance of $1 is issued to (40). The contract provides for the refund of all net premiums paid accumulated at the interest rate i >0 if the death occurs within 10 years from the inception of the contract. Present values are calculated at the same interest rate i > 0. Using the equivalence principle, the net annual premium payable for 20 years for this policy can be written as A40-201/k. Find k.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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A fully discrete 20 - year endowment insurance of $1 is issued to (40). The contract provides
for the refund of all net premiums paid accumulated at the interest rate i > 0 if the death
occurs within 10 years from the inception of the contract. Present values are calculated
at the same interest rate i > 0. Using the equivalence principle, the net annual premium
payable for 20 years for this policy can be written as A40-20/k. Find k.
Transcribed Image Text:A fully discrete 20 - year endowment insurance of $1 is issued to (40). The contract provides for the refund of all net premiums paid accumulated at the interest rate i > 0 if the death occurs within 10 years from the inception of the contract. Present values are calculated at the same interest rate i > 0. Using the equivalence principle, the net annual premium payable for 20 years for this policy can be written as A40-20/k. Find k.
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