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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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Consider a fully discrete (all cash flows yearly, due premiums) whole life insurance of 1, 000 on (x), with the payable premium determined using the equivalence principle and the following parameters: (i) i = 0.06 (ii) 2A, = 0.14 (iii) ä„ 12 (iv) Initial expenses are 75% of the first premium plus $10. (v) Renewal expenses are $2 plus 10% of each subsequent premium. (vi) An additional expense of $20 is paid when the death benefit is paid. Calculate the variance of the gross future loss random variable at t = 0.
Transcribed Image Text:Consider a fully discrete (all cash flows yearly, due premiums) whole life insurance of 1, 000 on (x), with the payable premium determined using the equivalence principle and the following parameters: (i) i = 0.06 (ii) 2A, = 0.14 (iii) ä„ 12 (iv) Initial expenses are 75% of the first premium plus $10. (v) Renewal expenses are $2 plus 10% of each subsequent premium. (vi) An additional expense of $20 is paid when the death benefit is paid. Calculate the variance of the gross future loss random variable at t = 0.
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