For a disability insurance claim: (i) The claimant will receive payments at the rate of 20,000 per year, payable continuously as long as she remains disabled. (ii) The length of the payment period in years is a random variable with the gamma distribution with parameters a= 2 and 0 = 1. That is f(t) = te-t (iii) Payments begin immediately. (iv) 8 = 0.05 Calculate the actuarial present value of the disability payments at the time of disability. (A) 36,400 (E) 40,000 (B) 37,200 (C) 38,100 (D) 39,200
For a disability insurance claim: (i) The claimant will receive payments at the rate of 20,000 per year, payable continuously as long as she remains disabled. (ii) The length of the payment period in years is a random variable with the gamma distribution with parameters a= 2 and 0 = 1. That is f(t) = te-t (iii) Payments begin immediately. (iv) 8 = 0.05 Calculate the actuarial present value of the disability payments at the time of disability. (A) 36,400 (E) 40,000 (B) 37,200 (C) 38,100 (D) 39,200
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
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Transcribed Image Text:For a disability insurance claim:
(i) The claimant will receive payments at the rate of 20,000 per year, payable continuously as long as
she remains disabled.
(ii)
The length of the payment period in years is a random variable with the gamma distribution with
parameters a= 2 and 0 = 1. That is
f(t) = te-t
(iii) Payments begin immediately.
(iv) 8 = 0.05
Calculate the actuarial present value of the disability payments at the time of disability.
(A) 36,400
(E) 40,000
(B) 37,200
(C) 38,100
(D) 39,200
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