You are given the following mortality table: x 90 91 92 93 94 95 lx 1000...

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You are given the following mortality table: x 90 91 92 93 94 95 lx 1000 900 720 432 216 0 For a special fully discrete 4-year term insurance issued to (91), you are given • i = 4% The death benefit during the first two years is 1000 The death benefit during the second two years is 500 The annual benefit premium for the first two years is twice the annual benefit premium for the last two years. The annual benefit premium for the last two years is P. (i) Calculate P. (10 marks) (ii) Calculate V. You are given the following mortality table: x 90 91 92 93 94 95 lx 1000 900 720 432 216 0 For a special fully discrete 4-year term insurance issued to (91), you are given • i = 4% The death benefit during the first two years is 1000 The death benefit during the second two years is 500 The annual benefit premium for the first two years is twice the annual benefit premium for the last two years. The annual benefit premium for the last two years is P. (i) Calculate P. (10 marks) (ii) Calculate V.

Answer rating: 100% (QA)

Solution a Expected Present Value of Benefit to be given 2000v1 l 91 l 90 2000v2l 91 l 90 1 l 92 l 9... View the full answer