truth in lending

November 28th 2005, 12:54 PM

Hello...

What must be the formula of a (fully continuous) continuously decreasing 25-yr. term insurance issued to (40)? (only the benefit not the premium)

The benefit b_t = 1000a-(25-t) (1000 times a continuous annuity of 25-t... sounds like a "bar" "angle 25-t"), for 0 <= t <= 25.

i = 0.05, premium is 200

The problem is to find the net premium reserve at the end of 10 years for this insuramce. (the answer is given to be 800 to this problem)

What must be the formula of a (fully continuous) continuously decreasing 25-yr. term insurance issued to (40)? (only the benefit not the premium)

The benefit b_t = 1000a-(25-t) (1000 times a continuous annuity of 25-t... sounds like a "bar" "angle 25-t"), for 0 <= t <= 25.

i = 0.05, premium is 200

The problem is to find the net premium reserve at the end of 10 years for this insuramce. (the answer is given to be 800 to this problem)