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CT5 October 2009 Q11

A

Ant

Member
Hi
I'm struggling to understand the reserve calculation in the solution to this question. With respect to the reserve calculation I don't understand why there is the factor of 6.125*(D65/D61). Is this not included in the Assurance term 6.125*A61:4? And since it's a endowment assurance with survival benefit only payable at maturity should we not be subtracting the term 6.125*(D65/D61) rather than adding it.

Thanks for your help in advance.
 
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