Question: 2. Cathy has a pet cat which just reached 5 years old and she would like to get a cover of 3-year term life insurance

2. Cathy has a pet cat which just reached 5 years old and she would like to get a cover of 3-year term life insurance of $5,000. Petinsure sells term life insurance policies based on the following mortality rates. Assume that interest rates are 3% per annum for all maturities (with semi-annual compounding). What is the fair annual premium PetInsure should charge? The mortality table for pet cats: Age Prob of death in 1 year 0.05 4 6 7 5 0.1 8 0.7 0.2 0.4 2. Cathy has a pet cat which just reached 5 years old and she would like to get a cover of 3-year term life insurance of $5,000. Petinsure sells term life insurance policies based on the following mortality rates. Assume that interest rates are 3% per annum for all maturities (with semi-annual compounding). What is the fair annual premium PetInsure should charge? The mortality table for pet cats: Age Prob of death in 1 year 0.05 4 6 7 5 0.1 8 0.7 0.2 0.4

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