An survival model is given by the survival function So(r) = e-0.0022 Suppose a whole life insurance policy with a benefit of $67250 payable immediately at the time of death of the insured life has a continuously compound interest rate d = 0.048 (a) What is the present value for the benefit if the policy is purchased at age 787 EPV =s 26697.2 (b) What is the standard deviation of the present value of this insurance benefit if the policy is purchased at age 787 Note: Round your answer to two decimal places.

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An survival model is given by the survival function So(r) = e-0.
-0.0022
Suppose a whole life insurance policy with a benefit of $67250 payable immediately at the time of death of the insured life has a continuously compound interest rate d = 0.048
(a) What is the present value for the benefit if the policy is purchased at age 787
EPV =s 26697.2
(b) What is the standard deviation of the present value of this insurance benefit if the policy is purchased at age
787
O =
Note: Round your answer to two decimal places.
Transcribed Image Text:An survival model is given by the survival function So(r) = e-0. -0.0022 Suppose a whole life insurance policy with a benefit of $67250 payable immediately at the time of death of the insured life has a continuously compound interest rate d = 0.048 (a) What is the present value for the benefit if the policy is purchased at age 787 EPV =s 26697.2 (b) What is the standard deviation of the present value of this insurance benefit if the policy is purchased at age 787 O = Note: Round your answer to two decimal places.
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