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revprev | Admin | Jan 19'24 at 21:50 | +20 | m | |
revcur | Admin | (Created page with "'''Answer: D''' The policy is fully discrete, so all cash flows occur at the start or end of a year. Die Year <math>1==>L_{0}=1000 v-315.80=625.96</math> Die Year <math>2==>L_{0}=1000 v^{2}-315.80(1+v)=273.71</math> Survive Year <math>2==L_{0}=1000 v^{3}-315.80\left(1+v+v^{2}\right)=-58.03</math> There is a loss if death occurs in year 1 or year 2, otherwise the policy was profitable. <math>\operatorname{Pr}(</math> death in year 1 or 2<math>)=1-e^{-2 \mu}=0.113</m...") | Jan 19'24 at 21:44 | +502 |