Revision as of 00:20, 19 January 2024 by Admin (Created page with "'''Answer: C''' The expected present value is: <math display="block"> \ddot{a}_{5}+{ }_{5} E_{55} \ddot{a}_{60}=4.54595+0.77382 \times 14.9041=16.07904 </math> The probability that the sum of the undiscounted payments will exceed the expected present value is the probability that at least 17 payments will be made. This will occur if (55) survives to age 71 . The probability is therefore: <math>{ }_{16} p_{55}=\frac{l_{71}}{l_{55}}=\frac{90,134.0}{97,846.2}=0.92118...")
Exercise
Jan 19'24
Answer
Answer: C
The expected present value is:
[[math]]
\ddot{a}_{5}+{ }_{5} E_{55} \ddot{a}_{60}=4.54595+0.77382 \times 14.9041=16.07904
[[/math]]
The probability that the sum of the undiscounted payments will exceed the expected present value is the probability that at least 17 payments will be made. This will occur if (55) survives to age 71 . The probability is therefore:
[math]{ }_{16} p_{55}=\frac{l_{71}}{l_{55}}=\frac{90,134.0}{97,846.2}=0.92118[/math]