Actuarial Mathematics
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Contingent Life Products

Worked Example

A life office issues 1,000 last survivor annuities of 5,000 p.a. each payable continuously to pairs of lives aged 60. Each pair comprises one male and one female and a single premium of 80,000 is charged. Calculate the expected present value assuming PA92C20 and 4% interest of the profit (or loss) to the company.

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