(no subject)
Chang, James ( (no email) )
Mon, 12 Oct 1998 10:41:07 -0400
> ----------
> From: Eric Madia[SMTP:bemad@pacbell.net]
> Reply To: bemad@pacbell.net
> Sent: Sunday, October 11, 1998 11:46PM
> To: Jason D Koerner
> Cc: studygroup4a@lists.casact.org
> Subject: Re:
>
> To do this problem, you need to realize that it is a CURTATE problem.
>
> a double dot xy bar = 1 + p xy bar (V) + lower 2 p xy bar (V^2),
> where
> v is the discount factor 1/1.1.
>
> you get: = 1 + (.75+.5-.375)V + [(.75)(.25) + (.5)(.5) -
> (.75)(.25)(.5)(.5)]V^2 = 2.11828
>
> Good Luck!
>
> Eric
>
>
> Does anybody know how to do question number 22 in the Spring 1998 4A
> exam?
> The question is:
> The curtate future lifetimes of a beneficiary, aged x, and her spouse,
> aged y, are subject to the following independent probabilities of
> death:
>
> k q x+k q y+k
> 0 0.25 0.50
> 1 0.75 0.50
> 2 1.00 1.00
>
> You may assume i = 10%
>
> Determine "a double dot xy bar", the net single premium for an annuity
> of
> 1 payable at the beginning of the year as long as either the
> beneficiary
>
> or spouse is alive.
>
>
> They say the answer is D. At least 2.0, but less than 2.2
> But I keep getting 2.31.
>
> Help!
>
> Thanks,
> J.D.
>
> Spring 98 #22
>
> I get:
>
> p__= p + p - p p =(1-.25)+(1-.5)-.75*.5=.875
> xy x y x y
>
> p__= p + p - p p = (1-.25)(1-.75)+ (1-.5)(1-.5)-.75*.25*.5*.5
> 2 xy 2 x 2 y 2 x 2 y
>
> =.3906
>
> a(double dot)__ = 1+ vp__ + v p__ = 1+ .875/1.1 + .3906/(1.1)^2=2.118
> xy xy 2 xy
>
> Hope this helps!
>
> James Chang
>