For a new type of 3 year term insurance for a person age 50, consider the following

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For a new type of 3 year term insurance for a person age 50, consider the following information:

The 10,000 death benefit is paid at the end of the year of death.

The annual effective interest rate is 4%

The premium for each of years 1 and 2 is half the premium in 3 years

Premiums are calculated using the equivalence principle

The mortality table has the following values:

x qx

50 0.05

51 0.06

52 0.07

53 0.08

Calculate the reserve at the end of year 2

which part isn't clear to you for me to explain it better?

Related Book For answer-question

Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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Posted Date: Aug 23, 2021 05:25 AM

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For a new type of 3 year term insurance for a person age 50, consider the following

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Calculate the Annual le and Reserve at and of Year 2 ... View the full answer

Financial Accounting an introduction to concepts, methods and uses

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