Problem #5: Find the EPV of a whole life insurance policy that pays an amount at the time of death that begins at $150,000 at t = 0, but then the payout decreases exponentially with time, such that it is down to $120,000 after 5 years (it continues to decrease at that same constant exponential rate afer that. There is no change in shape at t = 5). Use a force of mortality that is a constant 9%, and a constant force of interest of 8%. Problem #5: answer correct to the nearest dollar 4

Problem #5: Find the EPV of a whole life insurance policy that pays an amount at the time of death that begins at $150,000 at t = 0, but then the payout decreases exponentially with time, such that it is down to $120,000 after 5 years (it continues to decrease at that same constant exponential rate afer that. There is no change in shape at t = 5). Use a force of mortality that is a constant 9%, and a constant force of interest of 8%. Problem #5: answer correct to the nearest dollar 4

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section: Chapter Questions

Problem 4PT: An investment account was opened with aninitial deposit of 9,600 and earns 7.4 interest,compounded...

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