a group of 10 people, all 30ys old and set up a fund that will pay 100,000 to a name beneficiary at the end of the year of their death. Each agree to pay an equal amount that is equal to the expected present value of the death benefit for the whole life insurance. Use illustrative life table (i=6%)
1 death in each of the 2nd and 5th years, no deaths in year 1,3,and 4. Interest earned was 5% in the first year, 6% in the 2nd and 3rd year, and 7.5% in the 4th year and fifth year. what is the difference, between the expected size of the fund at the end of 5 years?
1 death in each of the 2nd and 5th years, no deaths in year 1,3,and 4. Interest earned was 5% in the first year, 6% in the 2nd and 3rd year, and 7.5% in the 4th year and fifth year. what is the difference, between the expected size of the fund at the end of 5 years?
Can someone help me this question? Thanks
