Spring 1998, Q=2E 19:
see what was given below=2E
NSP, or A(bar) 30:20| =3D =2E125=2E So a(bar) 30:20| =3D (1-=2E125)/0=2E06 =3D 14=2E=
58
and NAP for the endowment policy is 100,000*(A(bar)/a(bar)), or
100,000(=2E125/14=2E58) =3D 857=2E
E=2E
MIME:vchoi@transre=2Ecom on 10/16/98 10:57:00 AM
To: studygroup4a@lists=2Ecasact=2Eorg @ INTERNET=20=
cc: (bcc: Maria Pritykin/BOST/M&R)
Subject: RE: 98 questions=20=
Hey,
I don't have the solutions for Spring 1998=2E Would anyone please share how I
can tackle the two questions below? Thanks a million!!!
Thanks,
Victor
Spring 1998: Question 4:
You are given the following info about a "Type 2" universal life insurance
policy:
Death benefit: $100,000
Cash value: $40,000
monthly mortality charge: $25
Using the procedure described by Hallman & Hamilton, determine the monthly
mortality rate per $1000 coverage=2E
Answer: At least $=2E2 but less than $=2E3
Spring 1998: Question 19:
A person, aged 30, wishes to purchase a 20-year endowment policy with a
benefit of $100,000=2E The premiums are fully continuous and the benefit is
payable at the moment of death=2E
You may assume that the force of interest is constant sigma=3D=2E06 and the net
single premium for a 20-year endowment policy with a benefit of $1 payable at
the moment of death for the same person is =2E125=2E
Determine the continuous net annual premium for this endowment=2E
Answer: $825 or more