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Extra #3: In the Permanent Disability Model, assume constant forces of transition ¹=0.05, 0² = 0.01 and ²2=0.12. Premiums are paid continuously in state "0". Benefits are a continuous $50,000 per year in state "1". If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state "0". c) The benefit reserve 50 years after the issue of the policy on an individual in state “1”.

Extra #3: In the Permanent Disability Model, assume constant forces of transition ¹=0.05, 0² = 0.01 and ²2=0.12. Premiums are paid continuously in state "0". Benefits are a continuous $50,000 per year in state "1". If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state "0". c) The benefit reserve 50 years after the issue of the policy on an individual in state “1”.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Extra #3: In the Permanent Disability Model, assume constant forces of transition 01 02 ¹ = 0.05, 0² = 0.01 and ² = 0.12. Premiums are paid continuously in state "0". Benefits are a continuous $50,000 per year in state "1". If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state "0". c) The benefit reserve 50 years after the issue of the policy on an individual in state "1".
Transcribed Image Text:Extra #3: In the Permanent Disability Model, assume constant forces of transition 01 02 ¹ = 0.05, 0² = 0.01 and ² = 0.12. Premiums are paid continuously in state "0". Benefits are a continuous $50,000 per year in state "1". If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state "0". c) The benefit reserve 50 years after the issue of the policy on an individual in state "1".
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Please do question 3b and 3c with full handwritten working out 

Extra #3: In the Permanent Disability Model, assume constant forces of transition ¹ = 0.05, 0² = 0.01 and ² = 0.12. Premiums are paid continuously in state “0”. Benefits are a continuous $50,000 per year in state "1". If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state "0". c) The benefit reserve 50 years after the issue of the policy on an individual in state "1".
Transcribed Image Text:Extra #3: In the Permanent Disability Model, assume constant forces of transition ¹ = 0.05, 0² = 0.01 and ² = 0.12. Premiums are paid continuously in state “0”. Benefits are a continuous $50,000 per year in state "1". If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state "0". c) The benefit reserve 50 years after the issue of the policy on an individual in state "1".
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Please do question 3b and 3c with full handwritten working out 

Extra #3: In the Permanent Disability Model, assume constant forces of transition ¹ = 0.05, 0² = 0.01 and ² = 0.12. Premiums are paid continuously in state “0”. Benefits are a continuous $50,000 per year in state "1". If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state "0". c) The benefit reserve 50 years after the issue of the policy on an individual in state "1".
Transcribed Image Text:Extra #3: In the Permanent Disability Model, assume constant forces of transition ¹ = 0.05, 0² = 0.01 and ² = 0.12. Premiums are paid continuously in state “0”. Benefits are a continuous $50,000 per year in state "1". If i = 6%, find: a) The premium to be charged. b) The benefit reserve 50 years after the issue of the policy on an individual still in state "0". c) The benefit reserve 50 years after the issue of the policy on an individual in state "1".
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