Question: The random variable L is the prospective loss at time k for a special fully discrete three-year endowment insurance on (r). The death benefit is

 The random variable L is the prospective loss at time k

The random variable L is the prospective loss at time k for a special fully discrete three-year endowment insurance on (r). The death benefit is 1 for the first year and 4 for the other years. The pure endowment benefit (survival benefit) is 4. You are given: i = 0.10 9 = 0.009, 90+1 = 0.011 I The annual premium is 0.834 Calculate Var (L). The random variable L is the prospective loss at time k for a special fully discrete three-year endowment insurance on (r). The death benefit is 1 for the first year and 4 for the other years. The pure endowment benefit (survival benefit) is 4. You are given: i = 0.10 9 = 0.009, 90+1 = 0.011 I The annual premium is 0.834 Calculate Var (L)

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