Evaluate, on the basis of ELT12 Males mortality and 4% per annum interest, he following: (i) Expected value of the present value of a benefit of £2, 000 paid at the of death of a life aged 45 if they die within 3 years. There is end of year no payment on survival. (ii) Expected present value of a benefit of £10, 000 payable to a life aged 40 on survival to age 65.
Evaluate, on the basis of ELT12 Males mortality and 4% per annum interest, he following: (i) Expected value of the present value of a benefit of £2, 000 paid at the of death of a life aged 45 if they die within 3 years. There is end of year no payment on survival. (ii) Expected present value of a benefit of £10, 000 payable to a life aged 40 on survival to age 65.
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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Transcribed Image Text:3. Evaluate, on the basis of ELT12 Males mortality and 4% per annum interest,
the following:
(i) Expected value of the present value of a benefit of £2, 000 paid at the
end of year of death of a life aged 45 if they die within 3 years. There is
no payment on survival.
(ii) Expected present value of a benefit of £10, 000 payable to a life aged
40 on survival to age 65.
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