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Using a spreadsheet tool, calculate the risk premium (to 2 decimal places) for a single policyholder for a whole of life product for a 40 year old which provides a claim of $400,000 at the end of the year of death of the policyholder. Assume an interest rate of 6% per annum (i.e. the mean interest rate in the scenario) and that mortality rates follow the Australian Life Tables 2010-12 (female rates). Use this link and not the link under Video 6.1, as the age 109 mortality rate has been changed to 100% to ensure that everyone dies and receives an insurance payout AutoSave Off H File 15 A 1 2 3 1 4 E 5 6 7 7 8 o 9 10 10 14 11 10 12 13 12 11 14 15 15 Females Australian_Life_Tables_2010-12 (1) Protected View Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected 16 17 18 19 20 21 21 ריר 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 A Age x 0 1 2 3 4 5 6 19 7 7 3 17 B 18 7 19 On 20 E B 21 21 22 23 24 25 26 27 X ✔ fx 100.000 99,665 99.638 99,621 8 9 9 10 11 12 13 14 99.526 15 99.514 16 99,498 99,476 99,451 99.424 99.398 99,610 29.010 99.600 28.000 99,590 99.090 99,580 99.000 99,572 99.012 dx 99.564 99.004 99,557 99.550 99.543 99,535 99.372 99.346 99.320 99.294 99,268 99,242 99,214 28 99,186 29 99,155 30 99.123 31 99.089 32 33 99,051 99,011 34 98.968 35 98.921 36 98 870 Females C px 335 0.996648 27 0.999731 17 0.999830 11 11 0.999894 9 9 8 10 0.999899 0.999906 0.999913 0.999921 7 2 7 4 D 7 2 8 9 9 qx 0003352 0.000269 0.000170 0.999892 0.000108 0.000106 E 0.999930 0.0000 0.999923 0.0000 0.999907 0000093 19 12 0.999880 0.000120 16 0.999838 0.000162 22 0999778 0.000222 25 0.999750 0.000250 26 0.999735 0.000265 26 26 0.999735 0.000265 0.000101 0.000094 0.000087 0.000079 00000 0.999927 0.000073 0.999827 0.999931 0.000069 26 0.999737 0.000263 0.999739 0.000261 26 26 0.999740 0.000260 26 26 27 0.999732 27 0999724 0.000276 000310 00000 29 0.999712 0.000288 A 30 0.999696 0.000304 32 0.999675 0.000325 35 0.999651 0.000349 37 0.999624 0.000376 40 0.999595 0.000405 43 0.999562 0.000438 47 0.999626 0.000474 0999740 0.000260 0.999737 0.000263 0.000268 51 0.999487 0.000613 55 0.999444 0.000556 F G H I J k File 15 37 38 39 40 41 42 2 43 44 594 45 19 46 40 47 41 48 40 49 50 51 52 32 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Home Insert PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay A ▾ I 35 36 37 38 39 98.691 40 98.620 41 98,544 98,460 98 370 49 49 50 51 52 92 53 X 42 43 44 98,271 45 98,164 46 98,047 40 47 97,920 48 97,783 97,634 97,472 54 55 56 B 98.921 98.870 98,815 98,756 71 72 97 298 97.298 96,686 96.449 96.195. 57 95.921 58 95,625 FO 59 95,304 60 61 62 63 64 97,109 97 109 06 905 94.955 94.576 94,161 93,711 93.224 92.696 92,121 91,493 65 66 67 68 90,806 69 90,050 70 89,218 88,298 87 282 Females ✓ fx C D E 0.000513 0.999487 0999444 0.000556 0.999396 0.000604 65 0.999343 0.000657 70 0.999286 0.000714 77 0.999223 0.000777 51 55 60 83 0.999154 0.000846 91 0999079 0.000921 99 0.998997 0.001003 0.001092 107 0.998908 117 127 0.998708 0.998812 0.001188 0.001292 137 0.998596 0.001404 149 0.998476 0.001524 0.998347 0.001653 161 175 0.998208 0.001792 189 0.998060 0.001940 204 0.997902 0.002098 0.997734 0.002266 12266 220 236 0.997554 0002446 254 0.997363 0.002637 274 0.997153 0.002847 0.003084 296 0.996916 321 0996646 0.003354 0.003664 201000 349 0.996336 381 414 0.995992 0.004008 0995622 0.004378 449 0.995229 0.004771 487 0.994804 0.005196 528 0.994332 575 0 993797 0.005668 0.006203 0.006814 688 0.992485 0.007515 628 0.993186 756 0.991679 0.008321 833 0.990754 919 0 989695 0.009246 0.010305 0.011510 1124 0.987123 0012877 1,016 0.988490 F G H + File 15 A 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in F 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 A Y 71 72 73 74 82 83 B E 0.011510 88,298 87,282 0.012877 86.158 0.014418 84.916 0.016148 75 0.981920 0.018080 83,544 1,510 82,034 1.661 76 0979758 0.020242 77 80.373 1.827 0.977274 0.022726 78 2014 0.974362 0.025638 2.226 0.970918 0.029082 79 78.547 76,533 74,307 2,464 81 71.843 2,728 80 0.966840 0.033160 0.962030 0.037970 3,014 0.043608 69,115 66,101 0 956392 3.316 0.949834 0.050166 84 62,785 85 59.161 3.624 0.942272 0.057728 3,927 0.933625 0.066375 55,234 4,208 87 51.026 4.450 86 0.923821 0.076179 88 0.912796 0.087204 0.900496 0.099504 0.886875 0.113125 0.871902 0.128098 89 46,577 4.635 41.942 4,745 4,765 32.433 4,685 0.855566 0.144444) 27,748 4,498 0.837909 0.162091 90 37,197 91 92 93 23.250 4,200 0.819351 0.180649 19.050 3,804 0.800324 0.199676 15.246 3.335 0781234 0.218766 0.237546 11.911 2,829 0.762454 9.081 2.322 0.744323 0.255677 6.760 4915 1844 0.727147 0.272858 1.419 8.496 1,060 0.711202 0.288798 0696737 0,303263 2,436 776 0681208 0.318797 1.659 564 0666181 0.333819 1.105 385 0651594 0.348406 0.637453 0.362547 261 179 0.623764 0.376236 0610529 0.389471 94 95 96 97 98 99 100 101 102 103 104) 106 106 ⠀ 107 108 X 720 459 286 175 106 ✓ fx D C 1,016 0.988490 0.987123 1,124 0.985582 1,242 1,371 0.983852 Females 112 70 43 0.697752 0.402248 0585433 0.414667 F G + H 1 J Using a spreadsheet tool, calculate the risk premium (to 2 decimal places) for a single policyholder for a whole of life product for a 40 year old which provides a claim of $400,000 at the end of the year of death of the policyholder. Assume an interest rate of 6% per annum (i.e. the mean interest rate in the scenario) and that mortality rates follow the Australian Life Tables 2010-12 (female rates). Use this link and not the link under Video 6.1, as the age 109 mortality rate has been changed to 100% to ensure that everyone dies and receives an insurance payout AutoSave Off H File 15 A 1 2 3 1 4 E 5 6 7 7 8 o 9 10 10 14 11 10 12 13 12 11 14 15 15 Females Australian_Life_Tables_2010-12 (1) Protected View Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected 16 17 18 19 20 21 21 ריר 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 A Age x 0 1 2 3 4 5 6 19 7 7 3 17 B 18 7 19 On 20 E B 21 21 22 23 24 25 26 27 X ✔ fx 100.000 99,665 99.638 99,621 8 9 9 10 11 12 13 14 99.526 15 99.514 16 99,498 99,476 99,451 99.424 99.398 99,610 29.010 99.600 28.000 99,590 99.090 99,580 99.000 99,572 99.012 dx 99.564 99.004 99,557 99.550 99.543 99,535 99.372 99.346 99.320 99.294 99,268 99,242 99,214 28 99,186 29 99,155 30 99.123 31 99.089 32 33 99,051 99,011 34 98.968 35 98.921 36 98 870 Females C px 335 0.996648 27 0.999731 17 0.999830 11 11 0.999894 9 9 8 10 0.999899 0.999906 0.999913 0.999921 7 2 7 4 D 7 2 8 9 9 qx 0003352 0.000269 0.000170 0.999892 0.000108 0.000106 E 0.999930 0.0000 0.999923 0.0000 0.999907 0000093 19 12 0.999880 0.000120 16 0.999838 0.000162 22 0999778 0.000222 25 0.999750 0.000250 26 0.999735 0.000265 26 26 0.999735 0.000265 0.000101 0.000094 0.000087 0.000079 00000 0.999927 0.000073 0.999827 0.999931 0.000069 26 0.999737 0.000263 0.999739 0.000261 26 26 0.999740 0.000260 26 26 27 0.999732 27 0999724 0.000276 000310 00000 29 0.999712 0.000288 A 30 0.999696 0.000304 32 0.999675 0.000325 35 0.999651 0.000349 37 0.999624 0.000376 40 0.999595 0.000405 43 0.999562 0.000438 47 0.999626 0.000474 0999740 0.000260 0.999737 0.000263 0.000268 51 0.999487 0.000613 55 0.999444 0.000556 F G H I J k File 15 37 38 39 40 41 42 2 43 44 594 45 19 46 40 47 41 48 40 49 50 51 52 32 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Home Insert PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay A ▾ I 35 36 37 38 39 98.691 40 98.620 41 98,544 98,460 98 370 49 49 50 51 52 92 53 X 42 43 44 98,271 45 98,164 46 98,047 40 47 97,920 48 97,783 97,634 97,472 54 55 56 B 98.921 98.870 98,815 98,756 71 72 97 298 97.298 96,686 96.449 96.195. 57 95.921 58 95,625 FO 59 95,304 60 61 62 63 64 97,109 97 109 06 905 94.955 94.576 94,161 93,711 93.224 92.696 92,121 91,493 65 66 67 68 90,806 69 90,050 70 89,218 88,298 87 282 Females ✓ fx C D E 0.000513 0.999487 0999444 0.000556 0.999396 0.000604 65 0.999343 0.000657 70 0.999286 0.000714 77 0.999223 0.000777 51 55 60 83 0.999154 0.000846 91 0999079 0.000921 99 0.998997 0.001003 0.001092 107 0.998908 117 127 0.998708 0.998812 0.001188 0.001292 137 0.998596 0.001404 149 0.998476 0.001524 0.998347 0.001653 161 175 0.998208 0.001792 189 0.998060 0.001940 204 0.997902 0.002098 0.997734 0.002266 12266 220 236 0.997554 0002446 254 0.997363 0.002637 274 0.997153 0.002847 0.003084 296 0.996916 321 0996646 0.003354 0.003664 201000 349 0.996336 381 414 0.995992 0.004008 0995622 0.004378 449 0.995229 0.004771 487 0.994804 0.005196 528 0.994332 575 0 993797 0.005668 0.006203 0.006814 688 0.992485 0.007515 628 0.993186 756 0.991679 0.008321 833 0.990754 919 0 989695 0.009246 0.010305 0.011510 1124 0.987123 0012877 1,016 0.988490 F G H + File 15 A 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in F 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 A Y 71 72 73 74 82 83 B E 0.011510 88,298 87,282 0.012877 86.158 0.014418 84.916 0.016148 75 0.981920 0.018080 83,544 1,510 82,034 1.661 76 0979758 0.020242 77 80.373 1.827 0.977274 0.022726 78 2014 0.974362 0.025638 2.226 0.970918 0.029082 79 78.547 76,533 74,307 2,464 81 71.843 2,728 80 0.966840 0.033160 0.962030 0.037970 3,014 0.043608 69,115 66,101 0 956392 3.316 0.949834 0.050166 84 62,785 85 59.161 3.624 0.942272 0.057728 3,927 0.933625 0.066375 55,234 4,208 87 51.026 4.450 86 0.923821 0.076179 88 0.912796 0.087204 0.900496 0.099504 0.886875 0.113125 0.871902 0.128098 89 46,577 4.635 41.942 4,745 4,765 32.433 4,685 0.855566 0.144444) 27,748 4,498 0.837909 0.162091 90 37,197 91 92 93 23.250 4,200 0.819351 0.180649 19.050 3,804 0.800324 0.199676 15.246 3.335 0781234 0.218766 0.237546 11.911 2,829 0.762454 9.081 2.322 0.744323 0.255677 6.760 4915 1844 0.727147 0.272858 1.419 8.496 1,060 0.711202 0.288798 0696737 0,303263 2,436 776 0681208 0.318797 1.659 564 0666181 0.333819 1.105 385 0651594 0.348406 0.637453 0.362547 261 179 0.623764 0.376236 0610529 0.389471 94 95 96 97 98 99 100 101 102 103 104) 106 106 ⠀ 107 108 X 720 459 286 175 106 ✓ fx D C 1,016 0.988490 0.987123 1,124 0.985582 1,242 1,371 0.983852 Females 112 70 43 0.697752 0.402248 0585433 0.414667 F G + H 1 J

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