Find a formula to compute annual expense-augmented premium

Reference no: EM131001777

A whole-life policy issued at age x, with level annual premiums paid for life, provides for a death benefit paid at the moment of death. The expenses are as follows: in the first year, 70% of the initial premium, 1% of the face amount, and 30 per policy; in years 2 to 10, 10% of each premium, 0.5% of the face amount, and 10 per policy; after 10 years, 5% of each premium, 0.2% of the face amount and 5 per policy; the settlement expense is 100 per policy plus 0.5% of the face amount. Assume that the expenses in any year are paid at the beginning of the year.

Find a formula to compute the annual expense-augmented premium for a policy with a constant death benefit of 200000.

Reference no: EM131001777

Questions Cloud

Which statement about the magnitude of the normal force n : A man attempts to pick up his suitcase of weight ws by pulling straight up on the handle. However, he is unable to lift the suitcase from the floor. Which statement about the magnitude of the normal force n acting on the suitcase is true during th..

Prepare the journal entries appropriate to record : Prepare the journal entries appropriate to record the quasi reorganization on January 1, 2012.

What is the focal distance of the lens : An object placed 35 cm away from a lens projects a real image equal to 55 cm behind the lens. What is the focal distance of the lens? For the example above, what is the magnification of the lens? Not exactly sure what equation to use. Please help..

Describe a leadership development program : Describe a leadership development program you feel would be effective to keep managers aligned with customer needs and responsive to their staff'sneeds.

Find a formula to compute annual expense-augmented premium : Find a formula to compute the annual expense-augmented premium for a policy with a constant death benefit of 200000.

Important goals of union ethics training : In a 1 - 2 page paper, identify a minimum of three of the most important goals of union ethics training. In your paper, explain why these goals are important and how they will affect the effectiveness of unions

Find expense-augmented reserves and gross-premium reserves : You are given that i = 100%, qx = 0.2, qx+1 = 0.3. There are no withdrawals. Find the expense-augmented reserves, gross-premium reserves, and asset shares.

Assuming the shares are issued at the midpoint : Assuming the shares are issued at the midpoint of the price range indicated, how much capital did the IPO raise for Dolby Laboratories before any underwriting discount and offering expenses?

Calculate the actual profit less the expected profit : Calculate the actual profit less the expected profit, and classify this difference by source. For the latter, assume that all expense gains are calculated after the gains from the other sources.

User Account

All Pages