On her 45th birthday, Lisa Martin takes out a 20-year endowment policy with a £50,000 death benefit payable at the end of the year of death and a £30,000 survival benefit. The premium is payable annually in arrears. Assume an effective annual interest rate of 4% and the mortality given by table AMC00 ultimate values. (a) Calculate the expected present value of the survival benefit. (b) Calculate the expected present value of the death benefit. (c) What is the annual premium for the endowment policy?
On her 45th birthday, Lisa Martin takes out a 20-year endowment policy with a £50,000 death benefit payable at the end of the year of death and a £30,000 survival benefit. The premium is payable annually in arrears. Assume an effective annual interest rate of 4% and the mortality given by table AMC00 ultimate values. (a) Calculate the expected present value of the survival benefit. (b) Calculate the expected present value of the death benefit. (c) What is the annual premium for the endowment policy?
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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