Thread: Gross Premiums and Reserves

Um, please could I get some help on this question? I actually have the solutions but I believe them to be wrong and I'd just like to check.

And I don't understand part(b) at all so could someone please explain it to me? Many thanks!




When calculating j, shouldn't b be 1.92308%?

And shouldn't the APVFB(0)=10000xE(v^T(1+b)^k))?






I don't understand any of part b, so any help would be much appreciated.

For Part B, I thought APVFIB was the hard part. Did you note that it is substantially just (Present value of family benefit paid) less (present value of bonuses not paid)?