1. 1. (a) A population obeys the following mortality law, 1x =5120 (1 - ) for x 58. (0) Complete the following table and

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1 1 A A Population Obeys The Following Mortality Law 1x 5120 1 For X 58 0 Complete The Following Table And 1 (41.87 KiB) Viewed 36 times

1. 1. (a) A population obeys the following mortality law, 1x =5120 (1 - ) for x 58. (0) Complete the following table and find the following probabilities: 4 dy Pa 40 9 Age 0 1 2 3 4 5 6 7 (6 marks) (b) Assume that a population obeys the mortality law given in part (a) and that the annual interest rate is r = 6%. (0) An individual aged 2 takes out a 3-year life insurance policy for £50,000. Find the cost of this policy. (4 marks) (ii) An individual wishes to buy a car in 2 years' time at a cost of £3,000. What sum should be invested now in order to finance the purchase of the car if he is currently 3 years old? (2 marks) (i) An individual currently aged 2 wishes to buy a whole life annuity paying £10,000 per year, but deferred for 2 years. Find the cost of this policy. (4 marks)