Please mention all the calculation steps Question 5 (a). Consider a 10-year endowment, with...
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Please mention all the calculation steps
Question 5 (a). Consider a 10-year endowment, with payment of Rs.50,000, for a person aged 50. Calculate the net single premiums of this contract, in the following two cases: (i). Death benefit payment takes place at the moment of death, interest is compounded continuously with force of interest 8 = 0.05, and the future lifetime distribution of this t for 0 t 50. 50 person is given by tP50 = 1 - (ii). Death benefit payment takes place at the end of the year of death, the future lifetime probabilities of this person are based on the provided life tables, and AER is 5%. (iii). Briefly compare the net single premiums for parts (a) and (b)
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