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Mock 2020 paper A (original version) Q3

E

Eleanor Cawston

Active Member
Firstly, note I am referring to the original mock A sent out in the "before times". I stupidly forgot that there was a revised version.

In the solutions to question 3(ii), it gives the death benefit component of the PV RV as (K[35]+1)v^(T[35]) for T[35]=< 30.
I think this should be for T[35]< 30, since if T[35]= 30 then K[35] = 0 also and so we end up with a benefit of 31 being paid.

I had the death benefit paid for T[35]< 30 and the survival benefit paid for T[35]>= 30. What is wrong with my reasoning?
 
That's an excellent spot! Thank you for pointing this out. I agree with you - the death benefit should be paid for T[35]< 30 and the survival benefit paid for T[35]>= 30. I'll get this fixed in our next version of the mock (if we end up reverting to the "before times" version).
 
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