excans:61ffade529

Answer: C

Let [math]l_{80}=1000 \Rightarrow l_{81}=960 \Rightarrow l_{82}=902.4[/math]

[[math]]\textrm{Answer} \, =\frac{l_{81.1}-l_{81.6}}{l_{80.6}}=\frac{(960)^{0.9}(902.4)^{0.1}-(960)^{0.4}(902.4)^{0.6}}{(0.4)(1000)+(0.6)(960)}=0.02978[[/math]]

The value for [math]l_{80}[/math] is arbitrary. Any other starting value gives the same result.

Another form for the survivors between 81 and 82 would be

[math]\mu=-\ln (902 / 960)=0.0095833[/math];

[math]l_{81.1}=960 \times e^{-0.1 \times 0.0095833}=959.08 ;[/math]

[math]l_{81.6}=960 \times e^{-0.6 \times 0.0095833}=954.496[/math].

Copyright 2024 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.