Discussion Post: Actuarial Mathematics
Dr Lin, aged 35, takes out a pure endowment policy, which will pay a survival bene?t of £60,000 if he survives to age 55. Assume an effective interest rate of 4% per annum and mortality given by the AMC00 Select Table.
o What is the cost of the endowment policy?
o Dr Lin plans to use the survival bene?t to purchase a whole-life annuity paying a monthly amount in advance. How much are the monthly payments?
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.