Dc) 110.91

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A life aged 70 purchases a fully discrete whole life policy with a death benefit of $1000.
Mortality follows de Moivre's law with
interest is
w = 120
and the annual effective interest rate is
i-0.05·
%3!
Calculate
10V70
, the 10th terminal benefit reserve.
a) 90.15
b) 100.58
c) 110.91
d) 106.63
e) 95.26
Transcribed Image Text:A life aged 70 purchases a fully discrete whole life policy with a death benefit of $1000. Mortality follows de Moivre's law with interest is w = 120 and the annual effective interest rate is i-0.05· %3! Calculate 10V70 , the 10th terminal benefit reserve. a) 90.15 b) 100.58 c) 110.91 d) 106.63 e) 95.26
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