MLC Sample Question ( NEED PROFESSIONAL HELP.Thank you)
Under a policy issued by a life insurance company, the benet payable on death, at
the end of the year of death, is a return of premiums paid without interest. A level
premium of $1,500 is payable annually in advance, throughout the term of the policy.
For a policy in force at the start of the tenth year, you are given the following
Reserve at the start of the year, 9V : $11,300
Reserve at the end of the year per survivor, 10V : $13,200
Probability of death during the year: 0.04
Rate of interest earned: 5% p.a.
Calculate the prot expected to emerge at the end of the tenth year per policy in force
at the start of that year. Ignore expenses and all decrements other than death.