1. special 2-year term insurance policy on (70) is to be purchased by a single premium. Should death occur in the first year, the insured will receive, at the end of the year, 1000 plus the reserve at that time. If death occurs in the second year, the insured will receive at time 2 only a return of the single premium paid without interest. Suppose q70 = 0.36, q71 = 0.40, and the interest rate is 100%. Find (a) the single premium, (b) 1V.
2. A whole life insurance policy on (x) provides for death benefits, paid at the end of the year of death, of 1000 plus the reserve at that time. Level annual premiums of P are payable for life. Suppose that qx = 0.2, qx+1 = 0.2 and qy = 0.4 for all y ≥ x + 2. The interest rate is a constant 100%. Find (a) P (b) kV, k = 1, 2, ....