1. A 10-year endowment policy on (40) has death benefits of 900, payable at the end of the year of death, should this occur within 10 years, plus a pure endowment of 900 at age 50 if the insured is then alive. Level annual premiums of 20 are payable for 10 years. The interest rate is a constant 50% and q48 = 0.25. You are not given q49. Find tV for t = 8, 9, 10.
2. An insurance policy has level premiums of 20 payable for the duration of the contract. If the reserve is calculated with a premium of 15, then 0V = 100. What is 0V if the reserve is calculated with a premium of 16?