Let the Illustrative Life Tables hold where I =.06. Compute the NSV for each of

Question

Let the Illustrative Life Tables hold where I =.06. Compute the NSV for each of the following using any assumptions that are required. a.) A person age 20 takes out an insurance policy that pays 2 units at the time of death 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

c.) A person age 25 receives pension payments of $20,000 at the start of each surviving year starting at age 60

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