Question B Please

o For a fully discrete three year term insurance of 100,000 on Anne, age 40, you are given: (i) Anne's future mortality follows a double decrement model, where: Decrement 1 is death from Disease 1. Decrement 2 is death from any cause except Disease 1. (ii) je btc = A+ Bc40+4 for all t2 0, where A = 0.0001, B=1.075.10-6, c= 1.12. (iii) 42.2 = 34mb, or all +20. (iv) i = 0.05. (a) Show that p.5 = 0.995 to the nearest 0.001. You should calculate the value to the nearest () 0.0001. You are also given that , p. 4) = 0.99027, and play = 0.98462. (b) (i) Show that the expected present value at issue of Anne's death benefits is 1400 to the nearest 100. You should calculate the value to the nearest 1. (ii) Show that the net annual premium for Anne's insurance is 490 to the nearest 10. You should calculate the premium to the nearest 0.1. Anne purchases a policy rider that pays an additional 50,000 at the end of the year of death, if death is due to Disease 1. o For a fully discrete three year term insurance of 100,000 on Anne, age 40, you are given: (i) Anne's future mortality follows a double decrement model, where: Decrement 1 is death from Disease 1. Decrement 2 is death from any cause except Disease 1. (ii) je btc = A+ Bc40+4 for all t2 0, where A = 0.0001, B=1.075.10-6, c= 1.12. (iii) 42.2 = 34mb, or all +20. (iv) i = 0.05. (a) Show that p.5 = 0.995 to the nearest 0.001. You should calculate the value to the nearest () 0.0001. You are also given that , p. 4) = 0.99027, and play = 0.98462. (b) (i) Show that the expected present value at issue of Anne's death benefits is 1400 to the nearest 100. You should calculate the value to the nearest 1. (ii) Show that the net annual premium for Anne's insurance is 490 to the nearest 10. You should calculate the premium to the nearest 0.1. Anne purchases a policy rider that pays an additional 50,000 at the end of the year of death, if death is due to Disease 1