# Actuarial PV

• May 1st 2009, 07:31 AM
plm2e
Actuarial PV
The actuarial present value for an
n-year endowment insurance of 750 with death benefits payable at the end of the year of death of (x) is 625.

A special
n-year endowment insurance on (x) pays a pure endowment of 500 at the end of n year and pays only the net single premiunm 300 at the end of the year of death if death occurs during the n-year period. The actuarial present value for this insurance is 300.

Calculate the actuarial present value for an
n-year pure endowment of 1000 on (x).
• May 3rd 2009, 06:17 PM
TKHunny
You should not be struggling with this one. You had better step up your studies. Do NOT forget your basic algebra!

If x = Actuarial Present Value of an n-year term insurance paying \$1 at the end of the year of death, and

If y = Actuarial Present Value of an n-year pure endowment of \$1, then we have:

750x + 750y = 625
300x + 500y = 300

You need 1000x + 1000y = ??

You can write all the fancy symbols you want, but this is a basic algebra problem.