Hi,
I would like to ask about two aspects of this question and its solution:
Thank you very much for the clarification!
I would like to ask about two aspects of this question and its solution:
- We are comparing PV of maturity benefit and PV of premiums. Why is the PV of expenses not considered as it is also an outgo?
- For the maturity benefit, it is assumed that the sum assured paid out will be $93 000. Should the final sum assured be multiplied by reversionary bonuses (1.019231^15)? In part (I), the sum assured for the maturity benefit is 93000*(1.019231^15).
Thank you very much for the clarification!