Good day.
Can someone explain me on CM1 Practice Question 19.5 Solution (right hand side), why 1.005*10000* D65/D[35] * a(12) 65 ?
I get the first 2 and last 2 values correctly but I am confuse if the middle part {1.005*10000* D65/D[35] * a(12) 65} is combination of {age 65 the life receives a whole life annuity of £10,000 pa payable monthly in arrears. and claims: 0.5% of each annuity payment} ?
My answer is:
{age 65 the life receives a whole life annuity of £10,000 pa payable monthly in arrears.} = 10,000a(12)65
plus
{claims: 0.5% of each annuity payment} =0.005PA[35]:30
Hence my answer for the middle part is 10,000a(12)65 + 0.005PA[35]:30 instead of 1.005*10000* D65/D[35] * a(12) 65
Thank you.
Can someone explain me on CM1 Practice Question 19.5 Solution (right hand side), why 1.005*10000* D65/D[35] * a(12) 65 ?
I get the first 2 and last 2 values correctly but I am confuse if the middle part {1.005*10000* D65/D[35] * a(12) 65} is combination of {age 65 the life receives a whole life annuity of £10,000 pa payable monthly in arrears. and claims: 0.5% of each annuity payment} ?
My answer is:
{age 65 the life receives a whole life annuity of £10,000 pa payable monthly in arrears.} = 10,000a(12)65
plus
{claims: 0.5% of each annuity payment} =0.005PA[35]:30
Hence my answer for the middle part is 10,000a(12)65 + 0.005PA[35]:30 instead of 1.005*10000* D65/D[35] * a(12) 65
Thank you.