Question 1

i= 4.50%
Independent rates
x t q xw,t ,n q xd
60 0 0.09 0.008022 0.09431 0.00805
61 1 0.081 0.009009 0.08447 0.00905
62 2 0.072 0.010112 0.07472 0.01016
63 3 0.063 0.011344 0.06507 0.01141

Answer:
Premium: 56,392.69

t SA P(payment) discount
1 200,000 0.00766 0.95694
2 160,000 0.00780 0.91573
3 120,000 0.00801 0.87630
3 80,000 0.75520 0.87630
(al)x (ad)xw (aq)xw (ad)xd (aq)xd
1,000,000.00 89,644.20 0.08964 7,655.82 0.00766
902,699.98 72,793.47 0.08064 7,798.92 0.00864
822,107.58 58,895.69 0.07164 8,010.66 0.00974
755,201.23 47,310.23 0.06265 8,294.73 0.01098

NPV
1,465.23
1,142.67
842.37
52,942.42

56,392.69
Students generally did well in this question.
Question 2

Complete these cells

You may add additional columns and/or tables at the bottom of the sheet if you dee

Sum Assured
Male age (x)
Female age (y)
Term
Interest i
Interest j

Select
Males

Age, x lx dx d[x] l[x] q[x]

0 100000 2,548.00 2,293.20 99,745.20 0.02299
1 97452 501.00 450.90 97,401.90 0.00463
2 96951 191.00 171.90 96,931.90 0.00177
3 96760 123.00 110.70 96,747.70 0.00114
4 96637 95.00 85.50 96,627.50 0.00088
5 96542 92.00 82.80 96,532.80 0.00086
6 96450 87.00 78.30 96,441.30 0.00081
7 96363 86.00 77.40 96,354.40 0.00080
8 96277 94.00 84.60 96,267.60 0.00088
9 96183 92.00 82.80 96,173.80 0.00086
10 96091 88.00 79.20 96,082.20 0.00082
11 96003 77.00 69.30 95,995.30 0.00072
12 95926 78.00 70.20 95,918.20 0.00073
13 95848 88.00 79.20 95,839.20 0.00083
14 95760 100.00 90.00 95,750.00 0.00094
15 95660 113.00 101.70 95,648.70 0.00106
16 95547 129.00 116.10 95,534.10 0.00122
17 95418 151.00 135.90 95,402.90 0.00142
18 95267 174.00 156.60 95,249.60 0.00164
19 95093 200.00 180.00 95,073.00 0.00189
20 94893 228.00 205.20 94,870.20 0.00216
21 94665 260.00 234.00 94,639.00 0.00247
22 94405 300.00 270.00 94,375.00 0.00286
23 94105 340.00 306.00 94,071.00 0.00325
24 93765 385.00 346.50 93,726.50 0.00370
25 93380 434.00 390.60 93,336.60 0.00418
26 92946 488.00 439.20 92,897.20 0.00473
27 92458 545.00 490.50 92,403.50 0.00531
28 91913 605.00 544.50 91,852.50 0.00593
29 91308 656.00 590.40 91,242.40 0.00647
30 90652 721.00 648.90 90,579.90 0.00716
31 89931 792.00 712.80 89,851.80 0.00793
32 89139 868.00 781.20 89,052.20 0.00877
33 88271 970.00 873.00 88,174.00 0.00990
34 87301 1,019.00 917.10 87,199.10 0.01052
35 86282 1,062.00 955.80 86,175.80 0.01109
36 85220 1,092.00 982.80 85,110.80 0.01155
37 84128 1,118.00 1,006.20 84,016.20 0.01198
38 83010 1,142.00 1,027.80 82,895.80 0.01240
39 81868 1,150.00 1,035.00 81,753.00 0.01266
40 80718 1,181.00 1,062.90 80,599.90 0.01319
41 79537 1,173.00 1,055.70 79,419.70 0.01329
42 78364 1,153.00 1,037.70 78,248.70 0.01326
43 77211 1,168.00 1,051.20 77,094.20 0.01364
44 76043 1,206.00 1,085.40 75,922.40 0.01430
45 74837 1,245.00 1,120.50 74,712.50 0.01500
46 73592 1,258.00 1,132.20 73,466.20 0.01541
47 72334 1,274.00 1,146.60 72,206.60 0.01588
48 71060 1,290.00 1,161.00 70,931.00 0.01637
49 69770 1,293.00 1,163.70 69,640.70 0.01671
50 68477 1,325.00 1,192.50 68,344.50 0.01745
51 67152 1,344.00 1,209.60 67,017.60 0.01805
52 65808 1,366.00 1,229.40 65,671.40 0.01872
53 64442 1,389.00 1,250.10 64,303.10 0.01944
54 63053 1,413.00 1,271.70 62,911.70 0.02021
55 61640 1,440.00 1,296.00 61,496.00 0.02107
56 60200 1,468.00 1,321.20 60,053.20 0.02200
57 58732 1,497.00 1,347.30 58,582.30 0.02300
58 57235 1,497.00 1,347.30 57,085.30 0.02360
59 55738 1,531.00 1,377.90 55,584.90 0.02479
60 54207 1,583.00 1,424.70 54,048.70 0.02636
61 52624 1,634.00 1,470.60 52,460.60 0.02803
62 50990 1,670.00 1,503.00 50,823.00 0.02957
63 49320 1,707.00 1,536.30 49,149.30 0.03126
64 47613 1,743.00 1,568.70 47,438.70 0.03307
65 45870 1,760.00 1,584.00 45,694.00 0.03467
66 44110 1,796.00 1,616.40 43,930.40 0.03679
67 42314 1,810.00 1,629.00 42,133.00 0.03866
68 40504 1,822.00 1,639.80 40,321.80 0.04067
69 38682 1,832.00 1,648.80 38,498.80 0.04283
70 36850 1,849.00 1,664.10 36,665.10 0.04539
 71 35001 1,834.00 1,650.60 34,817.60 0.04741
72 33167 1,833.00 1,649.70 32,983.70 0.05002
73 31334 1,828.00 1,645.20 31,151.20 0.05281
74 29506 1,819.00 1,637.10 29,324.10 0.05583
75 27687 1,816.00 1,634.40 27,505.40 0.05942
76 25871 1,813.00 1,631.70 25,689.70 0.06352
77 24058 1,785.00 1,606.50 23,879.50 0.06728
78 22273 1,750.00 1,575.00 22,098.00 0.07127
79 20523 1,710.00 1,539.00 20,352.00 0.07562
80 18813 1,662.00 1,495.80 18,646.80 0.08022
81 17151 1,608.00 1,447.20 16,990.20 0.08518
82 15543 1,548.00 1,393.20 15,388.20 0.09054
83 13995 1,482.00 1,333.80 13,846.80 0.09633
84 12513 1,409.00 1,268.10 12,372.10 0.10250
85 11104 1,333.00 1,199.70 10,970.70 0.10935
86 9771 1,250.00 1,125.00 9,646.00 0.11663
87 8521 1,163.00 1,046.70 8,404.70 0.12454
88 7358 1,073.00 965.70 7,250.70 0.13319
89 6285 986.00 887.40 6,186.40 0.14344
90 5299 902.00 811.80 5,208.80 0.15585
91 4397 813.00 731.70 4,315.70 0.16954
92 3584 717.00 645.30 3,512.30 0.18373
93 2867 622.00 559.80 2,804.80 0.19959
94 2245 526.00 473.40 2,192.40 0.21593
95 1719 435.00 391.50 1,675.50 0.23366
96 1284 351.00 315.90 1,248.90 0.25294
97 933 275.00 247.50 905.50 0.27333
98 658 209.00 188.10 637.10 0.29524
99 449 153.00 137.70 433.70 0.31750
100 296 296.00 266.40 266.40 1.00000
m of the sheet if you deem it necessary.

𝑎 ̈_([𝑥𝑦]:(30|) ̅ )
〖 ^2 𝑎 ̈ 〗 _([𝑥𝑦]:(30|) ̅ )
500000 12.44172

𝐴_([𝑥𝑦]:(30|) ̅ )
35 8.46146

〖 ^2 𝐴 〗 _([𝑥𝑦]:(30|) ̅ )
32 0.40754
30 0.21333
5% Std Dev 108,682.73
10.25%

90%
Females

qx Age, x ly
0.02548 0 100000
0.00514 1 97706
0.00197 2 97265
0.00127 3 97083
0.00098 4 96970
0.00095 5 96879
0.00090 6 96792
0.00089 7 96708
0.00098 8 96627
0.00096 9 96549
0.00092 10 96472
0.00080 11 96396
0.00081 12 96323
0.00092 13 96251
0.00104 14 96175
0.00118 15 96092
0.00135 16 95998
0.00158 17 95893
0.00183 18 95769
0.00210 19 95614
0.00240 20 95428
0.00275 21 95213
0.00318 22 94955
0.00361 23 94646
0.00411 24 94280
0.00465 25 93851
0.00525 26 93371
0.00589 27 92822
0.00658 28 92204
0.00718 29 91520
0.00795 30 90818
0.00881 31 90073
0.00974 32 89296
0.01099 33 88490
0.01167 34 87648
0.01231 35 86799
0.01281 36 85950
0.01329 37 85106
0.01376 38 84259
0.01405 39 83415
0.01463 40 82612
0.01475 41 81796
0.01471 42 80994
0.01513 43 80194
0.01586 44 79393
0.01664 45 78604
0.01709 46 77821
0.01761 47 77032
0.01815 48 76238
0.01853 49 75439
0.01935 50 74634
0.02001 51 73822
0.02076 52 73001
0.02155 53 72136
0.02241 54 71252
0.02336 55 70348
0.02439 56 69419
0.02549 57 68462
0.02616 58 67472
0.02747 59 66446
0.02920 60 65401
0.03105 61 64292
0.03275 62 63138
0.03461 63 61941
0.03661 64 60701
0.03837 65 59424
0.04072 66 58087
0.04278 67 56686
0.04498 68 55219
0.04736 69 53654
0.05018 70 52055
0.05240 71 50339
0.05527 72 48609
0.05834 73 46815
0.06165 74 44941
0.06559 75 42969
0.07008 76 41002
0.07420 77 38986
0.07857 78 36954
0.08332 79 34846
0.08834 80 32716
0.09376 81 30510
0.09959 82 28385
0.10589 83 26223
0.11260 84 24072
0.12005 85 21944
0.12793 86 19853
0.13649 87 17811
0.14583 88 15793
0.15688 89 13878
0.17022 90 12040
0.18490 91 10294
0.20006 92 8639
0.21695 93 7104
0.23430 94 5714
0.25305 95 4487
0.27336 96 3433
0.29475 97 2554
0.31763 98 1844
0.34076 99 1289
1.00000 100 871
 The results for this question were reasonable. Students struggled to produce the l[x] tab
with the select deaths provided. Many students also calculated the Axy factors from the
calculations rather than using the conversion formulae (despite the hint in the template a
correctly calculating the annuity values). Students who did it this way, more often than n
did not allow for the maturity values.

dy d[y] l[y] q[y] qy Time (k) Male age

2,294.00 2,064.60 99,770.60 0.02069 0.02294 - 35
441.00 396.90 97,661.90 0.00406 0.00451 1 36
182.00 163.80 97,246.80 0.00168 0.00187 2 37
113.00 101.70 97,071.70 0.00105 0.00116 3 38
91.00 81.90 96,960.90 0.00084 0.00094 4 39
87.00 78.30 96,870.30 0.00081 0.00090 5 40
84.00 75.60 96,783.60 0.00078 0.00087 6 41
81.00 72.90 96,699.90 0.00075 0.00084 7 42
78.00 70.20 96,619.20 0.00073 0.00081 8 43
77.00 69.30 96,541.30 0.00072 0.00080 9 44
76.00 68.40 96,464.40 0.00071 0.00079 10 45
73.00 65.70 96,388.70 0.00068 0.00076 11 46
72.00 64.80 96,315.80 0.00067 0.00075 12 47
76.00 68.40 96,243.40 0.00071 0.00079 13 48
83.00 74.70 96,166.70 0.00078 0.00086 14 49
94.00 84.60 96,082.60 0.00088 0.00098 15 50
105.00 94.50 95,987.50 0.00098 0.00109 16 51
124.00 111.60 95,880.60 0.00116 0.00129 17 52
155.00 139.50 95,753.50 0.00146 0.00162 18 53
186.00 167.40 95,595.40 0.00175 0.00195 19 54
215.00 193.50 95,406.50 0.00203 0.00225 20 55
258.00 232.20 95,187.20 0.00244 0.00271 21 56
309.00 278.10 94,924.10 0.00293 0.00325 22 57
366.00 329.40 94,609.40 0.00348 0.00387 23 58
429.00 386.10 94,237.10 0.00410 0.00455 24 59
480.00 432.00 93,803.00 0.00461 0.00511 25 60
 549.00 494.10 93,316.10 0.00529 0.00588 26 61
618.00 556.20 92,760.20 0.00600 0.00666 27 62
684.00 615.60 92,135.60 0.00668 0.00742 28 63
702.00 631.80 91,449.80 0.00691 0.00767 29 64
745.00 670.50 90,743.50 0.00739 0.00820 30 65
777.00 699.30 89,995.30 0.00777 0.00863
806.00 725.40 89,215.40 0.00813 0.00903
842.00 757.80 88,405.80 0.00857 0.00952
849.00 764.10 87,563.10 0.00873 0.00969
849.00 764.10 86,714.10 0.00881 0.00978
844.00 759.60 85,865.60 0.00885 0.00982
847.00 762.30 85,021.30 0.00897 0.00995
844.00 759.60 84,174.60 0.00902 0.01002
803.00 722.70 83,334.70 0.00867 0.00963
816.00 734.40 82,530.40 0.00890 0.00988
802.00 721.80 81,715.80 0.00883 0.00980
800.00 720.00 80,914.00 0.00890 0.00988
801.00 720.90 80,113.90 0.00900 0.00999
789.00 710.10 79,314.10 0.00895 0.00994
783.00 704.70 78,525.70 0.00897 0.00996
789.00 710.10 77,742.10 0.00913 0.01014
794.00 714.60 76,952.60 0.00929 0.01031
799.00 719.10 76,158.10 0.00944 0.01048
805.00 724.50 75,358.50 0.00961 0.01067
812.00 730.80 74,552.80 0.00980 0.01088
821.00 738.90 73,739.90 0.01002 0.01112
865.00 778.50 72,914.50 0.01068 0.01185
884.00 795.60 72,047.60 0.01104 0.01225
904.00 813.60 71,161.60 0.01143 0.01269
929.00 836.10 70,255.10 0.01190 0.01321
957.00 861.30 69,323.30 0.01242 0.01379
990.00 891.00 68,363.00 0.01303 0.01446
1,026.00 923.40 67,369.40 0.01371 0.01521
1,045.00 940.50 66,341.50 0.01418 0.01573
1,109.00 998.10 65,290.10 0.01529 0.01696
1,154.00 1,038.60 64,176.60 0.01618 0.01795
1,197.00 1,077.30 63,018.30 0.01710 0.01896
1,240.00 1,116.00 61,817.00 0.01805 0.02002
1,277.00 1,149.30 60,573.30 0.01897 0.02104
1,337.00 1,203.30 59,290.30 0.02030 0.02250
1,401.00 1,260.90 57,946.90 0.02176 0.02412
1,467.00 1,320.30 56,539.30 0.02335 0.02588
1,565.00 1,408.50 55,062.50 0.02558 0.02834
1,599.00 1,439.10 53,494.10 0.02690 0.02980
1,716.00 1,544.40 51,883.40 0.02977 0.03297
1,730.00 1,557.00 50,166.00 0.03104 0.03437
1,794.00 1,614.60 48,429.60 0.03334 0.03691
1,874.00 1,686.60 46,627.60 0.03617 0.04003
1,972.00 1,774.80 44,743.80 0.03967 0.04388
1,967.00 1,770.30 42,772.30 0.04139 0.04578
2,016.00 1,814.40 40,800.40 0.04447 0.04917
2,032.00 1,828.80 38,782.80 0.04715 0.05212
2,108.00 1,897.20 36,743.20 0.05163 0.05704
2,130.00 1,917.00 34,633.00 0.05535 0.06113
2,206.00 1,985.40 32,495.40 0.06110 0.06743
2,125.00 1,912.50 30,297.50 0.06312 0.06965
2,162.00 1,945.80 28,168.80 0.06908 0.07617
2,151.00 1,935.90 26,007.90 0.07444 0.08203
2,128.00 1,915.20 23,859.20 0.08027 0.08840
2,091.00 1,881.90 21,734.90 0.08658 0.09529
2,042.00 1,837.80 19,648.80 0.09353 0.10286
2,018.00 1,816.20 17,609.20 0.10314 0.11330
1,915.00 1,723.50 15,601.50 0.11047 0.12126
1,838.00 1,654.20 13,694.20 0.12080 0.13244
1,746.00 1,571.40 11,865.40 0.13244 0.14502
1,655.00 1,489.50 10,128.50 0.14706 0.16077
1,535.00 1,381.50 8,485.50 0.16281 0.17768
1,390.00 1,251.00 6,965.00 0.17961 0.19566
1,227.00 1,104.30 5,591.30 0.19750 0.21474
1,054.00 948.60 4,381.60 0.21650 0.23490
879.00 791.10 3,345.10 0.23650 0.25604
710.00 639.00 2,483.00 0.25735 0.27800
555.00 499.50 1,788.50 0.27928 0.30098
418.00 376.20 1,247.20 0.30164 0.32428
871.00 783.90 783.90 1.00000 1.00000
produce the l[x] table
Axy factors from their
nt in the template and
, more often than not,

l[x] table l[y] table

Female age male female kp[35]:[32] v^k v^2k
32 86,175.80 89,215.40 1.00000 1.0000 1.0000
33 85,220.00 88,490.00 0.98087 0.9524 0.9070
34 84,128.00 87,648.00 0.95909 0.9070 0.8227
35 83,010.00 86,799.00 0.93717 0.8638 0.7462
36 81,868.00 85,950.00 0.91524 0.8227 0.6768
37 80,718.00 85,106.00 0.89352 0.7835 0.6139
38 79,537.00 84,259.00 0.87169 0.7462 0.5568
39 78,364.00 83,415.00 0.85023 0.7107 0.5051
40 77,211.00 82,612.00 0.82965 0.6768 0.4581
41 76,043.00 81,796.00 0.80903 0.6446 0.4155
42 74,837.00 80,994.00 0.78840 0.6139 0.3769
43 73,592.00 80,194.00 0.76762 0.5847 0.3418
44 72,334.00 79,393.00 0.74696 0.5568 0.3101
45 71,060.00 78,604.00 0.72652 0.5303 0.2812
46 69,770.00 77,821.00 0.70622 0.5051 0.2551
47 68,477.00 77,032.00 0.68611 0.4810 0.2314
48 67,152.00 76,238.00 0.66589 0.4581 0.2099
49 65,808.00 75,439.00 0.64573 0.4363 0.1904
50 64,442.00 74,634.00 0.62558 0.4155 0.1727
51 63,053.00 73,822.00 0.60543 0.3957 0.1566
52 61,640.00 73,001.00 0.58528 0.3769 0.1420
53 60,200.00 72,136.00 0.56484 0.3589 0.1288
54 58,732.00 71,252.00 0.54431 0.3418 0.1169
55 57,235.00 70,348.00 0.52371 0.3256 0.1060
56 55,738.00 69,419.00 0.50327 0.3101 0.0961
57 54,207.00 68,462.00 0.48270 0.2953 0.0872
58 52,624.00 67,472.00 0.46183 0.2812 0.0791
59 50,990.00 66,446.00 0.44069 0.2678 0.0717
60 49,320.00 65,401.00 0.41955 0.2551 0.0651
61 47,613.00 64,292.00 0.39816 0.2429 0.0590
62 45,870.00 63,138.00
INPUTS
Prem 20000 Initial Expense 1500
Init_Alloc 50% Renewal Expense 2%
Subs_All 98% Non Unit Growth 4%
Bid_Offer 5% Unit Growth 6%
Start_Age 40

Males Unit Fund

Age, x lx Year Prem
0 100000 1 R 20,000
1 97452 2 R 20,000
2 96951 3 R 20,000
3 96760 4 R 20,000
4 96637 5 R 20,000
5 96542 6 R 20,000
6 96450 7 R 20,000
7 96363 8 R 20,000
8 96277 9 R 20,000
9 96183 10 R 20,000
10 96091 11 R 20,000
11 96003 12 R 20,000
12 95926 13 R 20,000
13 95848 14 R 20,000
14 95760 15 R 20,000
15 95660 16 R 20,000
16 95547 17 R 20,000
17 95418 18 R 20,000
18 95267 19 R 20,000
19 95093 20 R 20,000
20 94893
21 94665
22 94405
23 94105
24 93765
25 93380
26 92946
27 92458
28 91913
29 91308
30 90652
31 89931
32 89139
33 88271
34 87301
35 86282
36 85220
37 84128
38 83010
39 81868
40 80718
41 79537
42 78364
43 77211
44 76043
45 74837
46 73592
47 72334
48 71060
49 69770
50 68477
51 67152
52 65808
53 64442
54 63053
55 61640
56 60200
57 58732
58 57235
59 55738
60 54207
61 52624
62 50990
63 49320
64 47613
65 45870
66 44110
67 42314
68 40504
69 38682
70 36850
71 35001
72 33167
73 31334
74 29506
75 27687
76 25871
77 24058
78 22273
79 20523
 80 18813
81 17151
82 15543
83 13995
84 12513
85 11104
86 9771
87 8521
88 7358
89 6285
90 5299
91 4397
92 3584
93 2867
94 2245
95 1719
96 1284
97 933
98 658
99 449
100 296
 Students generally did well in this question.
RiskDiscRate 10%
Sum Assured 200000
Mng Charge 1%

Pr.Alloc'd Costo'All Fnd aft.All Fund bef Mng Chr Mng Charge Fund Yr End
R 10,000 R 9,500 R 9,500 R 10,070 R 101 R 9,969
R 19,600 R 18,620 R 28,589 R 30,305 R 303 R 30,002
R 19,600 R 18,620 R 48,622 R 51,539 R 515 R 51,024
R 19,600 R 18,620 R 69,644 R 73,822 R 738 R 73,084
R 19,600 R 18,620 R 91,704 R 97,206 R 972 R 96,234
R 19,600 R 18,620 R 114,854 R 121,745 R 1,217 R 120,528
R 19,600 R 18,620 R 139,148 R 147,497 R 1,475 R 146,022
R 19,600 R 18,620 R 164,642 R 174,520 R 1,745 R 172,775
R 19,600 R 18,620 R 191,395 R 202,879 R 2,029 R 200,850
R 19,600 R 18,620 R 219,470 R 232,638 R 2,326 R 230,312
R 19,600 R 18,620 R 248,932 R 263,868 R 2,639 R 261,229
R 19,600 R 18,620 R 279,849 R 296,640 R 2,966 R 293,674
R 19,600 R 18,620 R 312,294 R 331,031 R 3,310 R 327,721
R 19,600 R 18,620 R 346,341 R 367,121 R 3,671 R 363,450
R 19,600 R 18,620 R 382,070 R 404,994 R 4,050 R 400,944
R 19,600 R 18,620 R 419,564 R 444,738 R 4,447 R 440,291
R 19,600 R 18,620 R 458,911 R 486,446 R 4,864 R 481,581
R 19,600 R 18,620 R 500,201 R 530,213 R 5,302 R 524,911
R 19,600 R 18,620 R 543,531 R 576,143 R 5,761 R 570,381
R 19,600 R 18,620 R 589,001 R 624,342 R 6,243 R 618,098
ell in this question.

Non-Unit Fund
Year Prem-CostAll Expenses Interest qx Death cost
1 10,500.00 -1,500.00 360.00 0.01463 -2,816.96
2 1,380.00 -400.00 39.20 0.01475 -2,540.10
3 1,380.00 -400.00 39.20 0.01471 -2,220.79
4 1,380.00 -400.00 39.20 0.01513 -1,945.17
5 1,380.00 -400.00 39.20 0.01586 -1,667.33
6 1,380.00 -400.00 39.20 0.01664 -1,339.51
7 1,380.00 -400.00 39.20 0.01709 -934.86
8 1,380.00 -400.00 39.20 0.01761 -485.82
9 1,380.00 -400.00 39.20 0.01815 -
10 1,380.00 -400.00 39.20 0.01853 -
11 1,380.00 -400.00 39.20 0.01935 -
12 1,380.00 -400.00 39.20 0.02001 -
13 1,380.00 -400.00 39.20 0.02076 -
14 1,380.00 -400.00 39.20 0.02155 -
15 1,380.00 -400.00 39.20 0.02241 -
16 1,380.00 -400.00 39.20 0.02336 -
17 1,380.00 -400.00 39.20 0.02439 -
18 1,380.00 -400.00 39.20 0.02549 -
19 1,380.00 -400.00 39.20 0.02616 -
20 1,380.00 -400.00 39.20 0.02747 -
ManageCh Profit Vect SurvProb Profit Sign Disc NPV
100.70 6,643.74 1.0000 6,643.74 0.9090909091 6,039.76
303.05 -1,217.86 0.9854 -1,200.04 0.826446281 -991.77
515.39 -686.20 0.9708 -666.19 0.7513148009 -500.52
738.22 -187.75 0.9566 -179.59 0.6830134554 -122.67
972.06 323.94 0.9421 305.17 0.6209213231 189.49
1,217.45 897.14 0.9271 831.78 0.5644739301 469.52
1,474.97 1,559.31 0.9117 1,421.65 0.5131581182 729.53
1,745.20 2,278.59 0.8961 2,041.92 0.4665073802 952.57
2,028.79 3,047.99 0.8803 2,683.29 0.4240976184 1,137.98
2,326.38 3,345.58 0.8644 2,891.81 0.3855432894 1,114.92
2,638.68 3,657.88 0.8483 3,103.15 0.3504938995 1,087.64
2,966.40 3,985.60 0.8319 3,315.75 0.3186308177 1,056.50
3,310.31 4,329.51 0.8153 3,529.78 0.2896643797 1,022.45
3,671.21 4,690.41 0.7984 3,744.64 0.2633312543 986.08
4,049.94 5,069.14 0.7812 3,959.77 0.2393920494 947.94
4,447.38 5,466.58 0.7636 4,174.54 0.2176291358 908.50
4,864.46 5,883.66 0.7458 4,388.07 0.1978446689 868.16
5,302.13 6,321.33 0.7276 4,599.52 0.1798587899 827.26
5,761.43 6,780.63 0.7091 4,807.96 0.1635079908 786.14
6,243.42 7,262.62 0.6905 5,015.04 0.148643628 745.45
Question 4

Complete these cells

You may add additional columns and/or tables at the bottom of the sheet if you deem it ne

(i)

Age, x lx qx age x
0 100000 0.02548 35
1 97452 0.00514 36
2 96951 0.00197 37
3 96760 0.00127 38
4 96637 0.00098 39
5 96542 0.00095 40
6 96450 0.00090 41
7 96363 0.00089 42
8 96277 0.00098 43
9 96183 0.00096 44
10 96091 0.00092 45
11 96003 0.00080 46
12 95926 0.00081 47
13 95848 0.00092 48
14 95760 0.00104 49
15 95660 0.00118 50
16 95547 0.00135 51
17 95418 0.00158 52
18 95267 0.00183 53
19 95093 0.00210 54
20 94893 0.00240 55
21 94665 0.00275 56
22 94405 0.00318 57
23 94105 0.00361 58
24 93765 0.00411 59
25 93380 0.00465 60
26 92946 0.00525 61
27 92458 0.00589 62
28 91913 0.00658 63
29 91308 0.00718 64
30 90652 0.00795 65
31 89931 0.00881
32 89139 0.00974
33 88271 0.01099
34 87301 0.01167
35 86282 0.01231
36 85220 0.01281
37 84128 0.01329
38 83010 0.01376
39 81868 0.01405
40 80718 0.01463
41 79537 0.01475
42 78364 0.01471
43 77211 0.01513
44 76043 0.01586
45 74837 0.01664
46 73592 0.01709
47 72334 0.01761
48 71060 0.01815
49 69770 0.01853
50 68477 0.01935
51 67152 0.02001
52 65808 0.02076
53 64442 0.02155
54 63053 0.02241
55 61640 0.02336
56 60200 0.02439
57 58732 0.02549
58 57235 0.02616
59 55738 0.02747
60 54207 0.02920
61 52624 0.03105
62 50990 0.03275
63 49320 0.03461
64 47613 0.03661
65 45870 0.03837
66 44110 0.04072
 67 42314 0.04278
68 40504 0.04498
69 38682 0.04736
70 36850 0.05018
71 35001 0.05240
72 33167 0.05527
73 31334 0.05834
74 29506 0.06165
75 27687 0.06559
76 25871 0.07008
77 24058 0.07420
78 22273 0.07857
79 20523 0.08332
80 18813 0.08834
81 17151 0.09376
82 15543 0.09959
83 13995 0.10589
84 12513 0.11260
85 11104 0.12005
86 9771 0.12793
87 8521 0.13649
88 7358 0.14583
89 6285 0.15688
90 5299 0.17022
91 4397 0.18490
92 3584 0.20006
93 2867 0.21695
94 2245 0.23430
95 1719 0.25305
96 1284 0.27336
97 933 0.29475
98 658 0.31763
99 449 0.34076
100 296 1.00000
 Students really struggled with this que
main issue was around the first compo
reserve or the net premium. Additiona
he sheet if you deem it necessary. correctly and mainly struggled to accu
in the first place.
INPUTS
Sum assured 2,000,000
Start age 35
Term 30
Initial expenses 1,000
Renewal expenses 2%
Interest 4%
Discount 10%
Profit Margin 10%
Premium

Reserve Interest 6% Alternative method

Net Premium 47,052.13

Net premium
k kpx v^k ax reserve k|qx
0 1.00000 1.0000 12.4797 - 0.01231
1 0.98769 0.9434 12.3202 25,573 0.01266
2 0.97504 0.8900 12.1551 52,022 0.01296
3 0.96208 0.8396 11.9837 79,496 0.01324
4 0.94884 0.7921 11.8051 108,114 0.01333
5 0.93551 0.7473 11.6166 138,325 0.01369
6 0.92183 0.7050 11.4207 169,720 0.01359
7 0.90823 0.6651 11.2113 203,281 0.01336
8 0.89487 0.6274 10.9856 239,449 0.01354
9 0.88133 0.5919 10.7473 277,637 0.01398
10 0.86735 0.5584 10.4987 317,487 0.01443
11 0.85292 0.5268 10.2389 359,113 0.01458
12 0.83834 0.4970 9.9636 403,240 0.01477
13 0.82358 0.4688 9.6717 450,010 0.01495
14 0.80863 0.4423 9.3620 499,649 0.01499
15 0.79364 0.4173 9.0311 552,681 0.01536
16 0.77829 0.3936 8.6809 608,798 0.01558
17 0.76271 0.3714 8.3081 668,553 0.01583
18 0.74688 0.3503 7.9108 732,226 0.01610
19 0.73078 0.3305 7.4868 800,173 0.01638
20 0.71440 0.3118 7.0336 872,798 0.01669
21 0.69771 0.2942 6.5486 950,524 0.01701
22 0.68070 0.2775 6.0285 1,033,871 0.01735
23 0.66335 0.2618 5.4696 1,123,437 0.01735
24 0.64600 0.2470 4.8651 1,220,325 0.01774
25 0.62825 0.2330 4.2127 1,324,876 0.01835
26 0.60991 0.2198 3.5079 1,437,827 0.01894
27 0.59097 0.2074 2.7436 1,560,319 0.01936
28 0.57161 0.1956 1.9107 1,693,785 0.01978
29 0.55183 0.1846 1.0000 1,839,740 0.02020
30 0.1741
 eally struggled with this question, with very few students scoring a pass mark or a pass grade. The
e was around the first component where students did not know how to calculate the net premium
the net premium. Additionally, in the second component, students failed to calculate the profit margin
nd mainly struggled to accurately allow for the change in reserves, which was not calculated correctly
place.

ive method (ii) Disc(Prems) NPV

578,012.22 57,946.15

Net premium
Ax reserve Year Age x Prem
0.29360 - 1 35 69,098.02
0.30263 25,573 2 36 69,098.02
0.31197 52,022 3 37 69,098.02
0.32168 79,496 4 38 69,098.02
0.33179 108,114 5 39 69,098.02
0.34246 138,325 6 40 69,098.02
0.35354 169,720 7 41 69,098.02
0.36540 203,281 8 42 69,098.02
0.37817 239,449 9 43 69,098.02
0.39166 277,637 10 44 69,098.02
0.40574 317,487 11 45 69,098.02
0.42044 359,113 12 46 69,098.02
0.43602 403,240 13 47 69,098.02
0.45254 450,010 14 48 69,098.02
0.47008 499,649 15 49 69,098.02
0.48881 552,681 16 50 69,098.02
0.50863 608,798 17 51 69,098.02
0.52973 668,553 18 52 69,098.02
0.55222 732,226 19 53 69,098.02
0.57622 800,173 20 54 69,098.02
0.60187 872,798 21 55 69,098.02
0.62932 950,524 22 56 69,098.02
0.65876 1,033,871 23 57 69,098.02
0.69040 1,123,437 24 58 69,098.02
0.72462 1,220,325 25 59 69,098.02
0.76155 1,324,876 26 60 69,098.02
0.80144 1,437,827 27 61 69,098.02
0.84470 1,560,319 28 62 69,098.02
0.89184 1,693,785 29 63 69,098.02
0.94340 1,839,740 30 64 69,098.02
1.00000 2,000,000
Profit Margin Premium
10% 69,098.02

Expenses Interest Death cost Maturity cost Incr Reserv

1,000 2,723.92 24,616.95 25,573.07
1,381.96 2,708.64 25,627.79 24,914.07
1,381.96 2,708.64 26,578.55 24,353.16
1,381.96 2,708.64 27,514.76 23,847.86
1,381.96 2,708.64 28,094.00 23,724.30
1,381.96 2,708.64 29,262.37 23,096.10
1,381.96 2,708.64 29,495.71 23,377.51
1,381.96 2,708.64 29,426.78 23,971.60
1,381.96 2,708.64 30,254.76 23,820.42
1,381.96 2,708.64 31,718.90 23,191.53
1,381.96 2,708.64 33,272.31 22,577.21
1,381.96 2,708.64 34,188.50 22,579.84
1,381.96 2,708.64 35,225.48 22,575.68
1,381.96 2,708.64 36,307.35 22,638.37
1,381.96 2,708.64 37,064.64 23,053.07
1,381.96 2,708.64 38,699.13 22,956.10
1,381.96 2,708.64 40,028.59 23,227.28
1,381.96 2,708.64 41,514.71 23,559.61
1,381.96 2,708.64 43,108.53 24,013.87
1,381.96 2,708.64 44,819.44 24,614.99
1,381.96 2,708.64 46,722.91 25,357.98
1,381.96 2,708.64 48,770.76 26,315.85
1,381.96 2,708.64 50,977.32 27,532.83
1,381.96 2,708.64 52,310.65 29,482.62
1,381.96 2,708.64 54,935.59 31,331.09
1,381.96 2,708.64 58,405.74 33,458.19
1,381.96 2,708.64 62,100.94 36,222.97
1,381.96 2,708.64 65,503.04 39,846.24
1,381.96 2,708.64 69,221.41 44,328.56
1,381.96 2,708.64 73,215.30 1,926,784.70 49,875.26
Profit Vect kpx v^k @ RDR NPV PV of prem
20,631.92 1.00000 0.90909 18,756.29 62,816.38
19,882.85 0.98769 0.82645 16,229.85 56,402.92
19,493.00 0.97504 0.75131 14,279.76 50,618.34
19,062.08 0.96208 0.68301 12,525.93 45,405.15
18,606.40 0.94884 0.62092 10,962.08 40,709.54
18,066.23 0.93551 0.56447 9,540.29 36,488.81
17,551.48 0.92183 0.51316 8,302.60 32,686.30
17,026.33 0.90823 0.46651 7,214.00 29,276.59
16,349.53 0.89487 0.42410 6,204.83 26,223.49
15,514.28 0.88133 0.38554 5,271.62 23,478.90
14,575.18 0.86735 0.35049 4,430.89 21,005.95
13,656.36 0.85292 0.31863 3,711.36 18,778.63
12,623.54 0.83834 0.28966 3,065.48 16,779.65
11,478.99 0.82358 0.26333 2,489.49 14,985.56
10,306.99 0.80863 0.23939 1,995.22 13,375.93
8,769.48 0.79364 0.21763 1,514.66 11,934.58
7,168.83 0.77829 0.19784 1,103.85 10,639.68
5,350.38 0.76271 0.17986 733.96 9,478.85
3,302.30 0.74688 0.16351 403.28 8,438.27
990.28 0.73078 0.14864 107.57 7,505.81
- 1,656.18 0.71440 0.13513 - 159.88 6,670.55
- 4,661.91 0.69771 0.12285 - 399.58 5,922.47
- 8,085.45 0.68070 0.11168 - 614.65 5,252.77
- 11,368.56 0.66335 0.10153 - 765.64 4,653.53
- 15,841.98 0.64600 0.09230 - 944.55 4,119.83
- 21,439.22 0.62825 0.08391 - 1,130.15 3,642.43
- 27,899.21 0.60991 0.07628 - 1,297.94 3,214.60
- 34,924.58 0.59097 0.06934 - 1,431.20 2,831.62
- 43,125.27 0.57161 0.06304 - 1,553.98 2,489.89
- 1,979,450.56 0.55183 0.05731 - 62,599.30 2,185.20