Calculate variance of the present value of the benefit

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Reference no: EM131352318

An insurance contract on a 30 years person will pay 30000 at the moment of death to (30)'s beneficiaries.

You are given:

1) the force of mortality is constant and equals 0.02

2) Annual effective interest rate of 5%

Calculate; a) the actuarial present value

b) variance of the present value of the benefit

Reference no: EM131352318

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