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Math Help - Actuarial PV

  1. #1
    Junior Member plm2e's Avatar
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    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).
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  2. #2
    MHF Contributor
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    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.
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