A three-year warranty on a new computer will pay b(k) = 500(4 - k) for failure...

  

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A three-year warranty on a new computer will pay b(k) = 500(4 - k) for failure in the kth year, for k 1, 2, 3. The benefit is paid at the end of the year of failure. The age at failure random variable follows a Pareto distribution with mean 4 and variance 48. At the annual interest rate of i = 0.05. Find the Actuarial Present Value of the warranty payment. %3D A three-year warranty on a new computer will pay b(k) = 500(4 - k) for failure in the kth year, for k 1, 2, 3. The benefit is paid at the end of the year of failure. The age at failure random variable follows a Pareto distribution with mean 4 and variance 48. At the annual interest rate of i = 0.05. Find the Actuarial Present Value of the warranty payment. %3D

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