Revision as of 23:58, 22 October 2024 by Admin (Created page with "We compute: {| class="table table-bordered" |- ! Year !! Expected Loss !! Cumulative payments || Reserve |- | AY1 || 20,500 * 0.85 = 17,425 || 16,740 || 685 |- | AY2 || 30,000 * 0.7 = 21,125 || 21,125 || 0 |- | AY3 || 27,500 * 0.8 = 22,000 || 19,750 || 2,250 |- | AY4 || 31,250 * 0.75 =23,437.5 || 20,100 || 3,337.5 |- || || || || '''Total: 6,310.5''' |}")
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Exercise

ABy Admin
Oct 23'24

Answer

We compute:

Year Expected Loss Cumulative payments Reserve
AY1 20,500 * 0.85 = 17,425 16,740 685
AY2 30,000 * 0.7 = 21,125 21,125 0
AY3 27,500 * 0.8 = 22,000 19,750 2,250
AY4 31,250 * 0.75 =23,437.5 20,100 3,337.5
Total: 6,310.5
00