1. ## UDD prob

http://i146.photobucket.com/albums/r...ouis/prob3.jpg

I have started in this direction but i was told it was wrong:

A bar (overset 1)20:20l(with bar above last 20) = (i/δ) A20:20l (with bar above last 20)

A bar (overset 1)20:20l(with bar above last 20) = .02 (given)
i = .1 (given)
A20:20l (with bar above last 20) = .32 (given)
A bar (overset 1)40:30l(with bar above 30)= .25

trying to find: A bar (overset 1)20:50l(with bar above 50)= ?

so, .02 = (.1/δ)*.32
.0625 = .1/δ
δ = 1.6

2. It will help if you can wrote out the meaning of the symbols.

"A" is a curtate life insurance.

"A-Bar" is a continuous life insurance.

The first lower-right number is an age.

The second is a duration.

Can you say for sure what the "1" is doing? Does it relate to the "A" or to the Age?

Are you sure i/ $\delta$ is appropriate for UDD?

Are you sure you are clear on the difference between a term insurance and an endowment insurance? Your setting 0.02 = i/ $\delta$ * 0.32 is not encouraging. That may be good for the pure insurance portion, but you have entirely overlooked the pure endowment.

Hint: [(i/ $\delta$)*0.32] less 0.02 = price of continuous pure endowment for 20 years at age 20.