Question: 1. (10 points) For a $50,000 fully discrete 10-year term insurance policy issued to an individual aged 50, you are given: (i) (ii) Mortality follows

1. (10 points) For a $50,000 fully discrete 10-year term insurance

1. (10 points) For a $50,000 fully discrete 10-year term insurance policy issued to an individual aged 50, you are given: (i) (ii) Mortality follows the Standard Ultimate Life Table, and i = 0.05 Expenses are 5% of premium in each year plus $50 at issue a. (5 points) Calculate the gross level premium payable each year using the equivalence principle (show answer as dollars and cents, i.e. 2 decimal places) b. (5 points) Calculate 5V (the gross policy value). Assume the gross premium for this part is $110 instead of the value you determined in part a. 1. (10 points) For a $50,000 fully discrete 10-year term insurance policy issued to an individual aged 50, you are given: (i) (ii) Mortality follows the Standard Ultimate Life Table, and i = 0.05 Expenses are 5% of premium in each year plus $50 at issue a. (5 points) Calculate the gross level premium payable each year using the equivalence principle (show answer as dollars and cents, i.e. 2 decimal places) b. (5 points) Calculate 5V (the gross policy value). Assume the gross premium for this part is $110 instead of the value you determined in part a

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