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Find the fair constant annual premium payment?

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Find the fair constant annual premium payment?

Postby ealahweemah » Fri Jul 13, 2012 12:06 pm

Suppose a group of 40-year old individuals purchase whole life insurance policies for $100,000 each. Also assume that the annual mortality rate is constant at 2.5%.

a. Find the present value of the benefits the insurance company is expected to pay over the next 40 years if the annual cost of money is 10%.

b. Find the fair constant annual premium payment.
ealahweemah
 
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Find the fair constant annual premium payment?

Postby anshel51 » Fri Jul 13, 2012 12:07 pm

Sounds like a homework question.

Homework help section?
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