Something to be careful of here, a very common mistake in CT5, is to forget the survival benefit. A_30:10 = A_30 - v^10 10p30 A_40 + v^10 10p30 Here we have split into death benefit + survival benefit. Then we accelerate the death benefits ONLY because they are paid immediately on death: =sqrt(1+i)* [A30 - v^10 10p30 A40] + v^10 10p30 TIP: Always stick CT5 discount factors v^10 10p30 in you calculator memory - you invariably will need to use more than once in a given question Whenever you look up values in AM92, always perform 3 checks in your head: 1. Have I got the correct interest rate? 4% or 6% 2. Is it Select or Ultimate? 3. Do x and n add up to 60 or 65? (this last one is irrelevant here because x and n add up to 40 but very often you can just look the value up) Good luck! John
