Exercise
ABy Admin
Jan 20'24
Answer
Answer: A
If [math]G[/math] denotes the gross premium, then
[[math]]
G=\frac{1000 A_{35}+30 \ddot{a}_{35}+270}{0.96 \ddot{a}_{35}-0.26}=\frac{1000(0.09653)+30(18.9728)+270}{0.96(18.9728)-0.26}=52.12
[[/math]]
So that,
[[math]]
\begin{aligned}
& R=1000 A_{36}+(30-0.96 G) \ddot{a}_{36} \\
& \quad=1000(0.10101)+(30-0.96 \times 52.12)(18.8788)=-277.23
\end{aligned}
[[/math]]
Note that [math]S=0[/math] as per definition of FPT reserve.