Exercise 4.3 A with-profit whole life insurance policy issued to a life aged exactly 30 has a basic sum insured of $100 000. The insurer assumes compound reversionary bonuses at the rate of 3% will vest at the end of each policy year. Using the Standard Ultimate Survival Model, with interest at 5% per year, calculate the EPV of this benefit.

MATLAB: An Introduction with Applications
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Exercise 4.3 A with-profit whole life insurance policy issued to a life aged
exactly 30 has a basic sum insured of $100 000. The insurer assumes compound
reversionary bonuses at the rate of 3% will vest at the end of each policy year.
Using the Standard Ultimate Survival Model, with interest at 5% per year,
calculate the EPV of this benefit.
Transcribed Image Text:Exercise 4.3 A with-profit whole life insurance policy issued to a life aged exactly 30 has a basic sum insured of $100 000. The insurer assumes compound reversionary bonuses at the rate of 3% will vest at the end of each policy year. Using the Standard Ultimate Survival Model, with interest at 5% per year, calculate the EPV of this benefit.
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