Given that the life table is

20              97,741        118                       

21               97,623        124                       

22               97,499        129

23               97,370        130

24               97,240        130

25               97,110        128

and the annual effective interest rate is 4.5%, find the actuarial present values of benefit for

(i) a temporary 4-years insurance of $100,000 payable at the end of the year of death I     

     issued to a person aged 20.

(ii) a 3-year pure endowment insurance of $100,000 issued to a person aged 22.

(iii) a 5-year insurance payable  at the end of the year of death issued to a person aged 20.

      The insurance company promises to pay $100,000 if he dies within the first two years,

      $200,000 if he dies within 3^rd and 4^th year, and $300,000 if he dies in the last year of   

      the term.

Solution

1)    

               = 458.89

2)     

3)