Round all answers to 4 decimal places. Assume ultimate mortality unless otherwise stated. Using AM92 and...

 

Transcribed Image Text:

Round all answers to 4 decimal places. Assume ultimate mortality unless otherwise stated. Using AM92 and an interest rate of 4%, evaluate the following (show your working): (a) The probability that a life aged 64 dies between age 73 and 77. (b) The expected present value and standard deviation of the present value of an immediate annuity of $1000 payable in arrears to a life aged 55 for 9 years. Also using AM92 and an interest rate of 4%, approximate the following (show your working): (c) The probability that a life aged 40.7 that was select at age 40, dies in the next year. Assume a uniform distribution of deaths between integer ages. (d) The expected present value of $100 payable immediately on death to a life aged 35. (e) The expected present value of an annuity paying $50 per month in advance to a life aged 50 for a term of 10 years. Round all answers to 4 decimal places. Assume ultimate mortality unless otherwise stated. Using AM92 and an interest rate of 4%, evaluate the following (show your working): (a) The probability that a life aged 64 dies between age 73 and 77. (b) The expected present value and standard deviation of the present value of an immediate annuity of $1000 payable in arrears to a life aged 55 for 9 years. Also using AM92 and an interest rate of 4%, approximate the following (show your working): (c) The probability that a life aged 40.7 that was select at age 40, dies in the next year. Assume a uniform distribution of deaths between integer ages. (d) The expected present value of $100 payable immediately on death to a life aged 35. (e) The expected present value of an annuity paying $50 per month in advance to a life aged 50 for a term of 10 years.

Answer rating: 100% (QA)

a The probability that a life aged 64 dies between age 73 and 77 is 00517 This can be calculated by using the AM92 mortality table and the formula for calculating the probability of death The probabil... View the full answer