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Homework answers / question archive / Calculate the EPV of this assurance contract: 5 year endowment with death benefit of 15000$ and maturity benefit of 20000$
Calculate the EPV of this assurance contract:
5 year endowment with death benefit of 15000$ and maturity benefit of 20000$. The rate of interest is 4% and the death probability is 0.1 per annum. The contract expects to sell 300 contracts and there is an annual premium of 110% charged by the insurer.