Hi everyone, This is my first post so bear with me if it's not very clear...!! I have used a different method (which I thought was perfectly valid) but it gives me a different answer to the given solution. If anyone can shed any light on why it's different I would be most grateful as it's driving me slightly mad...!! Question Evaluate A68:2 using AM92 and interest rate at 6% pa. My Answer My answer uses A68:2 = A'68:2 + A"68:2 (where the first is assurance with the life dying and the second is an assurance with the life surviving). This gives me an answer of 0.90821. Given Answer A68:2 = vq68 + v^2 * p68 This gives an answer of 0.89106. I understand where the given answer comes from, I just don't understand why my answer isn't the same!! Any help much appreciated!!
If I understand you correctly, A68:2 is a endowment assurance payable at end of year of death or at end of 2 years if sooner. A'68:2 (payable if live dies) = v q68 + v^2 p68 * q69 A"68:2 (payable on survival) = v^2 * 2p68 = v^2 * p68 * p69 If that's what you did it should be correct since they are the same (adding and factorising with (q69+p69=1)). Sometimes with these questions you may get slightly different answers due to rounding errors.
Please tell me this is not a CT4 question, because if it is, I havent come across this in the notes.. .. same goes for the Central rates of mortality and population projections type questions which i see from past year papers.
Looks like CT5 to me, so no need to worry Jensen. Though central rates of mortality are in the core reading, and have come up in exams fairly recently.
Didster, Thanks for your reply, even though I posted in the wrong place!!! I then used (A68 - D70/D68 * A70) + D70/D68. I looked the relevant values up in the table and got my answer of 0.90821.
