You are given the following information about a special policy: i. Benefits of 100, 250, 400, and 300 are paid at the end of the year of death if death occurs in years 1, 3, 7, and 10, respectively. ii. Premiums of 100, 400, and 1000 are paid at the beginning of years 1, 5, and 10, respectively, if the insured is still alive. iii. Mortality follows iv. Annual effective inferest is i = 0.04 9x+k =0.2 + 0.01k %3D Calculate the benefit reserve at time 6. a) -216.84 b) -221.97 Oc) 216.84 d) 209.33 e) 221.97
You are given the following information about a special policy: i. Benefits of 100, 250, 400, and 300 are paid at the end of the year of death if death occurs in years 1, 3, 7, and 10, respectively. ii. Premiums of 100, 400, and 1000 are paid at the beginning of years 1, 5, and 10, respectively, if the insured is still alive. iii. Mortality follows iv. Annual effective inferest is i = 0.04 9x+k =0.2 + 0.01k %3D Calculate the benefit reserve at time 6. a) -216.84 b) -221.97 Oc) 216.84 d) 209.33 e) 221.97
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Transcribed Image Text:You are given the following information about a special policy:
i. Benefits of 100, 250, 400, and 300 are paid at the end of the year of death if death
occurs in years 1, 3, 7, and 10, respectively.
ii. Premiums of 100, 400, and 1000 are paid at the beginning of years 1, 5, and 10,
respectively, if the insured is still alive.
iii. Mortality follows a. = 0.2 + 0.01k
iv. Annual effective inferest is i = 0.04
Calculate the benefit reserve at time 6.
a) -216.84
b) -221.97
Oc) 216.84
d) 209.33
e) 221.97
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