CT5 question bank part 4.16

Please can someone explain why in calculating the profit signature, the discount rate was not applied to the profit vector.

(19) = (17) x (18)

Thank you.

 

Is it asked to calculate EPV of profit?

 

Hello,

The question says "(i) Calculate the profit signature for this policy according to the premium basis."

 

Discount rate is applied to find EPV.
Profit signature = profit @ year end * prob. of life surviving since inception.
Given solution is correct.