John a non actuary estimates the single benefit premium for a continuous whole life policy with a benefit of $9000 on (40) by calculating the present value of $9000 paid at the expected time of death.
Given that (40) is subject to a constant force of morality ux = 0.055 and the force of interest is 0.075 determine the absolute value of the error of John's estimate.
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John a non actuary estimates the single benefit premium for a continuous whole life policy with a benefit of $9000 on (40) by calculating the present value of $9000 paid at the expected time of death.
Given that (40) is subject to a constant force of morality ux = 0.055 and the force of interest is 0.075 determine the absolute value of the error of John's estimate.
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