What is the new single premium

Reference no: EM131001980

For a certain insurance contract, on (50), the death benefit for the first year of the contract is 1100, payable at the end of the year of death. The single premium for the whole contract is 600. This is based on an interest rate of 10% for the first year and a mortality table with q50 = 0.20. If the value of q50 is changed to 0.25, while all other value of qx are unchanged, what is the new single premium?

Reference no: EM131001980

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