For a special fully discrete life insurance on (45), (i) The benefit is 1000 if death...

  

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For a special fully discrete life insurance on (45), (i) The benefit is 1000 if death occurs before age 65, 500 otherwise. (ii) Premiums are payable at the beginning of the first 20 years only. (iii) i = 0.05 (iv) A45 = 0.2 (v) 20E45= 0.3 (vi) 45:20 = 12.6 Determine the annual net premium. (A) 11.24 (B) 11.90 (C) 13.05 (D) 13.16 (E) 15.87 For a special fully discrete life insurance on (45), (i) The benefit is 1000 if death occurs before age 65, 500 otherwise. (ii) Premiums are payable at the beginning of the first 20 years only. (iii) i = 0.05 (iv) A45 = 0.2 (v) 20E45= 0.3 (vi) 45:20 = 12.6 Determine the annual net premium. (A) 11.24 (B) 11.90 (C) 13.05 (D) 13.16 (E) 15.87

Answer rating: 100% (QA)

Step 12 The present value of the policy is PV 1000 1 e00545005 500 1 e00565005 PV 1000 06339 0477... View the full answer