What is minimum premium that policyholder will have to pay

Assignment Help Basic Statistics
Reference no: EM131001724

A universal life policy provides a death benefit at the end of the period of death of 100 000. The account value at time 20 is 2500. For the time period from time 20 to time 21, the credited interest rate is 0.006, the expense charge is 5% of any premium paid plus 100, and the cost of insurance rate is 30 per thousand.

(a) Suppose that at time 20, the policyholder makes the minimum premium payment of 500, which according to the guarantee in the contract ensures that the cost of insurance will be paid regardless of the amount in the account. Find the account value at time 21.

(b) If the contract does not carry the secondary guarantee of part (a), what is the minimum premium that the policyholder will have to pay at time 20 to ensure that the cost of insurance can be paid.

Reference no: EM131001724

Questions Cloud

Appropriate degree of honesty to use with patients : What is Lipkin crucial test for determining the appropriate degree of honesty to use with patients?
Sort result table by the last name and then by first name : List the last name, first name, and hire date of all the people in the L_employees table. Divide the hire date column into two columns: one called "old timers" for people hired before the year 2000, and one called "newer hires" for people hired af..
Symbolic logic : Course: Symbolic logic Question: Prove by complete mathematical induction that any formula can be given a complete analytical tablea
Analyzing the reason you have become a good writer : Write an essay analyzing the reason you have become a good writer or explaining why you are not as good as you would like to. Some factors to consider that may have influenced your writing ability. 1. Your family background: did you see people writin..
What is minimum premium that policyholder will have to pay : If the contract does not carry the secondary guarantee of part (a), what is the minimum premium that the policyholder will have to pay at time 20 to ensure that the cost of insurance can be paid.
Claim of peter singer : Explain specifically what Aristotle, Kant and Stuart Mill will respond to this claim of Peter Singer (soution to world poverty article), who claims that one should donate most of one's  disposable income to organizations like OXFAM/ UNICEF
Animals testing have predicted an escalating conflict : Protesters for and against animals testing have predicted an escalating conflict after the two sides clashed during weekend demonstrations in Oxford. Both groups pledged to step up campaigns which have already resulted in death threats aimed at advoc..
Discuss the configuration and activation of auditing : Discuss the configuration and activation of auditing for files, users or other system objects to help technical personnel recognize, diagnose, deter and/or work to prevent attempts to compromise or break into a computer network.
Show that difference between the type a and type b account : Show that the difference between the type A and type B account values at the end of the year is the same as the difference between the type B and type A COI for that period, accumulated with interest to the end of the..

Reviews

Write a Review

 

Basic Statistics Questions & Answers

  Mutually exclusive or not mutually exclusive events

Decide if the events A and B are mutually exclusive or not mutually exclusive. A card is drawn from standard deck of 52 playing cards.

  How many of each product should be produced for profit

Using the below information in a linear programing problem maximize the profit for product A and B. Provide how many of each product should be produced and what is the profit at that level?

  Nissan sold three models of cars in north america in 1999

nissan sold three models of cars in north america in 1999 sentras maximas and pathfinders. of the vehicles sold 50 were

  Estimate amount of parking fees collected during the week

Which of the following scenarios would lead to the most accurate estimate of the amount of parking fees collected during the week?

  Determine a sample size with confidence level

A central university has a student population of 60,000. The university is interested in determining what proportion of them is in favour of a new grading system.

  Two sided test for null hypothesis

Use suitable one or two sided test for null hypothesis of no difference in them then changes rating between groups at 0.10 significance level.

  A survey of an urban university population of 25450 showed

a survey of an urban university population of 25450 showed that 750 of 1100 students sampled attended a home football

  Correlation coefficient-margin of error

What units represent the margin of error? Suppose you want to decrease the margin of error, but want to keep the 95% confidence interval. What do you need to do?

  Awhat is the expected value of this game bwhat is the house

the game of 5-spot keno is similar to 4-spot keno. 80 numbers are displayed on a board and 20 of these numbers will

  Wageweb is a service of hrpdi and provides compensation

wageweb is a service of hrpdi and provides compensation information on more than 170 benchmark positions in human

  An accounting firm has been hired by a large computer

an accounting firm has been hired by a large computer company to test whether the proportion of accounts receivables

  Non parametric test-kruskal wallis test with box plots

Conduct post hoc comparisons with the LSD method. Which groups differ significantly at α = 0.05?

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