A certain policy issued at age 28 provides for the following schedule of payable amounts: Benefits (RM) Year 1 2 3 4 5 6-12 13 14 15 16 17 Death 10,000 8,000 6,000 4,000 2,000 1,000 5,000 10,000 15,000 20,000 Survival - - - - - 10,000 Assume premiums are payable at the beginning of each year, death benefits are payable at the end of year of death and survival benefit is payable upon reaching the maturity age. a) Write the commutation functions for the above policy if a person purchased the policy by semi-annual premium payable for ten years. b) Find the semi-annual premium payment for question 3(a) above.

A certain policy issued at age 28 provides for the following schedule of payable amounts: Benefits (RM) Year 1 2 3 4 5 6-12 13 14 15 16 17 Death 10,000 8,000 6,000 4,000 2,000 1,000 5,000 10,000 15,000 20,000 Survival - - - - - 10,000 Assume premiums are payable at the beginning of each year, death benefits are payable at the end of year of death and survival benefit is payable upon reaching the maturity age. a) Write the commutation functions for the above policy if a person purchased the policy by semi-annual premium payable for ten years. b) Find the semi-annual premium payment for question 3(a) above.

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter8: Sequences And Series

Section8.4: Mathematics Of Finance

Problem 1E: An annuity is a sum of money that is paid in regular equal payments. The __________ of an annuity is...

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