Emmy and Jane are independent lives, both aged 60. They purchase an insurance policy which provides...
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Emmy and Jane are independent lives, both aged 60. They purchase an insurance policy which provides $50,000, payable at the end of the year of Emmy's death, provided Emmy dies after Jane. Annual premiums are payable in advance throughout Emmy's lifetime. Assume no expenses, interest is 5% per year, and Gompertz' law with B = 0.0003 and c = 1.075 for both lives. Calculate the net annum premium. Emmy and Jane are independent lives, both aged 60. They purchase an insurance policy which provides $50,000, payable at the end of the year of Emmy's death, provided Emmy dies after Jane. Annual premiums are payable in advance throughout Emmy's lifetime. Assume no expenses, interest is 5% per year, and Gompertz' law with B = 0.0003 and c = 1.075 for both lives. Calculate the net annum premium.
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As per the given data Since total worth of policy 5000000 If Emmy ... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
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