60. Consider a special fully discrete 10-year level payment 20-year endowment insurance on (40), with death benefit bk-1 = 1.039126* x 1000 for k=0,1.....19. If the policyholder survives for 20 years, a survivor benefit of 2076.876 would be payable at age The level annual premium, payable at the beginning of the year for at most 10 years, is P. You are given: (1) Mortality follows the Illustrative Life Table and i=0.06 (ii) The following net single premiums at different terms and interest rates: i A A 10E40 2% 0.034537 0.094157 0.788438 0.591372 4.04% 0.030764 0.074299 0.646794 0.398178 6% 0.027667 0.060132 0.536674 0.274137 8.12% 0.024799 0.048654 0.440260 0.184486 12.36% 0.020237 0.033469 0.299676 0.085477 40:101 40:20 2o E 4o (a) Express the loss at issue random variable, L in terms of K40 and P. (b) Determine P by the equivalence principle. 60. Consider a special fully discrete 10-year level payment 20-year endowment insurance on (40), with death benefit bk-1 = 1.039126* x 1000 for k=0,1.....19. If the policyholder survives for 20 years, a survivor benefit of 2076.876 would be payable at age The level annual premium, payable at the beginning of the year for at most 10 years, is P. You are given: (1) Mortality follows the Illustrative Life Table and i=0.06 (ii) The following net single premiums at different terms and interest rates: i A A 10E40 2% 0.034537 0.094157 0.788438 0.591372 4.04% 0.030764 0.074299 0.646794 0.398178 6% 0.027667 0.060132 0.536674 0.274137 8.12% 0.024799 0.048654 0.440260 0.184486 12.36% 0.020237 0.033469 0.299676 0.085477 40:101 40:20 2o E 4o (a) Express the loss at issue random variable, L in terms of K40 and P. (b) Determine P by the equivalence principle