Question: 2. (a) Explain the term Actuarial Present Value. What does this value represent in the context of Life Insurance. (b) What is an Endowment Insurance.

2. (a) Explain the term "Actuarial Present Value. What does this

2. (a) Explain the term "Actuarial Present Value. What does this value represent in the context of Life Insurance. (b) What is an Endowment Insurance. Identify and explain the two kinds of endowment Insurance. (c) Consider a pure endowment policy for a boy, effected at his birth, which provides 10,000GHC for the boy on his 18th birthday. You are given the following information: (i) lo =100,000 and 118 = 96,514 (ii) The annual effective interest rate of i= 10percent. Write down the present value of the benefit payment under this policy, regarding it as a random variable. Calculate its mean value and standard deviation . 2. (a) Explain the term "Actuarial Present Value. What does this value represent in the context of Life Insurance. (b) What is an Endowment Insurance. Identify and explain the two kinds of endowment Insurance. (c) Consider a pure endowment policy for a boy, effected at his birth, which provides 10,000GHC for the boy on his 18th birthday. You are given the following information: (i) lo =100,000 and 118 = 96,514 (ii) The annual effective interest rate of i= 10percent. Write down the present value of the benefit payment under this policy, regarding it as a random variable. Calculate its mean value and standard deviation

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