For this problem at age (x): The force of interest is constant at δ = 0.05. The force of mortality μx+t = 0.02 for 0 ≤ t ≤ 10. On January 1, 2012, you (exact age x = 40) enter into a 10-year endowment of $100,000 with an insurance company. The death benefit is paid immediate upon death. a. Find the survival function tp40 for 0 ≤ t ≤ 10. b. Calculate the probability that a life aged 40 survives to age 50. c. Calculate ̊e40:10 , the 10-year temporary expectation of life of (40). d. Calculate the net single premium for this contract.
For this problem at age (x): The force of interest is constant at δ = 0.05. The force of mortality μx+t = 0.02 for 0 ≤ t ≤ 10. On January 1, 2012, you (exact age x = 40) enter into a 10-year endowment of $100,000 with an insurance company. The death benefit is paid immediate upon death. a. Find the survival function tp40 for 0 ≤ t ≤ 10. b. Calculate the probability that a life aged 40 survives to age 50. c. Calculate ̊e40:10 , the 10-year temporary expectation of life of (40). d. Calculate the net single premium for this contract.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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For this problem at age (x):
The force of interest is constant at δ = 0.05.
The force of mortality μx+t = 0.02 for 0 ≤ t ≤ 10.
On January 1, 2012, you (exact age x = 40) enter into a 10-year endowment of $100,000 with an insurance company. The death benefit is paid immediate upon death.
a. Find the survival
b. Calculate the
c. Calculate ̊e40:10 , the 10-year temporary expectation of life of (40).
d. Calculate the net single premium for this contract.
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