a) For an annuity, the claimant will receive payments of RM (YOUR MATRIC NO.) per year, payable continuously as long as she remains to survive. The length of the payment period in years is a random variable with probability density function (p.d.f.) f(t) = te-t,t> 0 Calculate the actuarial present value of the annuity with the force of interest 0.05, and payments begin immediately. Note: For Matric No: 123456, then RM123,456.

a) For an annuity, the claimant will receive payments of RM (YOUR MATRIC NO.) per year, payable continuously as long as she remains to survive. The length of the payment period in years is a random variable with probability density function (p.d.f.) f(t) = te-t,t> 0 Calculate the actuarial present value of the annuity with the force of interest 0.05, and payments begin immediately. Note: For Matric No: 123456, then RM123,456.

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter13: Probability And Calculus

Section13.3: Special Probability Density Functions

Problem 42E

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