Re: studygroup4a Digest for 5 Aug 1999

( Gennadiy.Gorodnitskiy@empirehealthcare.com )
Wed, 11 Aug 1999 17:09:30 -0400

Hi guys
I think example 4.3.2 page 112 is saying simply about expected value of the fund
at the age of 35.
At age 30 we have all 100 insureds available. So we have 1000(100) (l 30/ l
30)A30. And l30/l30 1.
At age 35 only 99.15040% from original 100 people is alive. So 1000(100)( l 35/
l 30) means that a fund is available
to only 99 insureds. And 1000(100) (l 35 / l30)A35=12,762.58 is a higher number
since net single premium
has to be shared now by less insureds.
Gennadiy