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(a) A couple has just celebrated their 25th wedding anniversary. What is the probability of them celebrating their 50th wedding anniversary, if the husband is aged exactly 50, his wife is aged exactly 45, and assuming that both of their mortality follows the AM92 Ultimate table? (Assume they won't get divorced!)
(b) Adam, aged 65 and earning $60,000 a year is about to retire on a pension equal to two thirds of his salary at retirement. The pension will remain at this rate as long as both he and his business partner, Ben, now aged 60, are alive, but will reduce to one half of his final salary on the death of either partner. Estimate the present value of these benefits if the pension is payable annually in advance at 4% pa interest. Use the AM92 Ultimate table. You are also given ä65.60=10.5982
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