Find present value given that interest rates are a constant

Reference no: EM131001954

1. An insurance contract on (x) provides for 2, paid at the moment of death if this occurs within n years, plus a pure endowment of 3 if x is alive at the end of n years. Find the present value given that interest rates are a constant 6%, vnnpx = 0.4 and Ax(1n) = 0.2.

2. An insurance policy on (x) provides for a death benefit of t paid at the moment of death, should this occur at time t. Assuming UDD, find a formula for the present value in terms of end-of-the-year-of-death insurances.

Reference no: EM131001954

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