Using the Illustrative Life Tables, compute the NSV for each of the following wh

Question

Using the Illustrative Life Tables, compute the NSV for each of the following where i = .06: a.) A person age 20 takes out an insurance policy that pays 2 units at the time of death. My Answer: .06/ln(1.06) * A20 = .0677193821 then NSV = 2*.0677193821 = .1354387642 Is this correct? b.) A person age 20 takes out an insurance policy that pays 2 units at the time of death if death occurs within 30 years and a benefit of 3 units is paid if age 60 is reached. c.) A person age 25 receives pension payments of $20,000 at the start of each surviving year starting at age 60. d.) A person age 25 takes out an insurance policy that pays $30,000 at the end of the month of death if death occurs before age 60.

Explanation / Answer

yes. you are correct

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.