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revAdmin (Created page with "'''Answer: B''' Let <math>P</math> be the net premium for year 1 . Then: <math display="block"> \begin{aligned} & P+1.01 P v p_{x}=100,000 v q_{x}+(1.01)(100,000) v^{2} p_{x} q_{x+1} \\ & P\left[1+\frac{1.01}{1.05} 0.99\right]=100,000\left(\frac{0.01}{1.05}+\frac{(1.01)(0.99)(0.02)}{(1.05)^{2}}\right) \Rightarrow P=1416.93 \end{aligned} </math> {{soacopyright|2024}}")Jan 19'24 at 21:43+374