6. A charity fund is set up to to take care the funeral services of 100...

Transcribed Image Text:

6. A charity fund is set up to to take care the funeral services of 100 independent elderly aged 70. $30,000 will be paid from the fund for the service whenever a death occurs. Find the minimum amount needed, when the fund is established, to pay off all funeral service charges of these 100 elderly with 95% probabil- ity. Assume the mortality follows the Standard Select and Ultimate Survival Model with Uniform Distribution of Death over Fractional Ages and 5% per year interest. 6. A charity fund is set up to to take care the funeral services of 100 independent elderly aged 70. $30,000 will be paid from the fund for the service whenever a death occurs. Find the minimum amount needed, when the fund is established, to pay off all funeral service charges of these 100 elderly with 95% probabil- ity. Assume the mortality follows the Standard Select and Ultimate Survival Model with Uniform Distribution of Death over Fractional Ages and 5% per year interest.