Calculate the net single premium

Assignment Help Accounting Basics
Reference no: EM133172053

Question - Consider a five-year term insurance issued to a select life aged 40 by a single premium, with sum insured $1 million payable immediately on death. Assume that mortality follows the Standard Select Life Table, with UDD between integer ages, and assume an interest rate of 5% per year.

Required -

(a) Write down an expression for the net loss at issue random variable.

(b) Calculate the net single premium.

(c) Calculate the probability that the contract makes a profit.

Reference no: EM133172053

Questions Cloud

Construct a column chart for the data : Construct a column chart for the data in the Excel sheet State Unemployment Rates to allow comparison of the rate with the historical highs and lows.
Prepare the journal entry to record the bond issuance : On July 1, 2020, Davis Corp. issued $800,000 par value, 10%, 10-year bonds, Prepare the journal entry to record the bond issuance
Thinking about your current job : Thinking about your current job or a job you previously held, discuss whether you believe that you personally would benefit from a person-focused pay plan
Enormous and memorable impact on you as leader : Name a person who has had an enormous and memorable impact on you as a leader? What does self-awareness have to do with leadership?
Calculate the net single premium : Assume that mortality follows the Standard Select Life Table, with UDD between integer ages, Calculate the net single premium
How will each of the three pillars-servant leadership : How will each of the Three Pillars-servant leadership, ethics, and entrepreneurism- be integrated and impact your business practice in the future?
Interviewing healthcare leader in healthcare organization : Pretend that you are interviewing a healthcare leader in a healthcare organization.
Write off an account balance owed by asha : Tinder, a dating website based on matching horoscopes charges its users a monthly fee, Write off an account balance of $2,500 owed by Asha
Should gray make the gift of the land to charity : Gray projects taxable income of $1,000,000 for 2020 and $1,200,000 for 2021. Should Gray make the gift of the land to charity in 2020 or in 2021

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd