**BEGINNING OF EXAMINATION**

1. A select and ultimate survival model has a 3-year select period, and is specified as
follows:

(i) The ultimate part of the model follows the Illustrative Life Table.

(ii) The select part of the model is such that:

px 1 lyean
5 years z years
px px 5 px 1 1
px 3 px 2 2

Lean

)zqq7#
Calculate 4 q 45 . =
10000=98410.36+10.0158967
100000
445 ]
-

+1=1000004-944
)±
00278
(A) 0.0125 100000
£4
.

5)
=

-00344

-59,937-8.96-00431
(B) 0.0135
l@⇒
(C) 0.0145
laissez
'
997224 -

quid
✓ (D) -0.0155 99378.9611 98950.63
lu5I+3= face
-

(E) 0.0165

qqy
98950.6311 )
lusty
-598410.36
-

.
00546

Exam MLC: Spring 2018 –1– GO ON TO NEXT PAGE

2. You are given:

(i) 0.2 q50.6 0.10

(ii) Deaths are uniformly distributed over each year of age.

Calculate q50 . 61.2850

.
=
.
61050 •

off
50.6

(A) 0.365 "2qso

.
=
.6qso)C⇒
4-
1- 6
(B) 0.370 = of so

2q
.

so

(C) 0.375 2.6 of so

= 1

10.3846T
'

(D) 0.380 2 6- =

qso
=

✓ (E) -0.385

Exam MLC: Spring 2018 –3– GO ON TO NEXT PAGE

3. A couple, both age 65, have the option to receive one of the following:

A life annuity of F per year, payable at the beginning of each year while at
least one is alive.
A lump sum of 100,000 if both lives survive 5 years.

You are given:

(i) Mortality follows the Illustrative Life Table.

(ii) i 0.06

(iii) Their future lifetimes are independent.

(iv) The actuarial present values of the payments under the two options are
equal.

Calculate F. F
'

ciao
= 100000×5 SPGS : as

✓
(A)

(B)
3560

-4830
F( -

oiasias

47.8552
) Lajas
=
100000406554653434.5¥

9.8969
(C) 6460

(D) 7340 F =
57628.18405
#
F(4827=7#
(E) 9820

Exam MLC: Spring 2018 –5– GO ON TO NEXT PAGE

4. You are given: '
't 55
@
f-9¥ ) f-d)
=

(i) i 0.05

(ii) 1000 15 E50 462 dM7= 0.48691112

ftp.t#=A5Y'-.sE5oAdsMti5E5o
[1/0.52652073]
12
(iii) 1000 A 50 189
A
12
(iv) 1000 A 65 354 4622.354 f.462
189
-
.

12
Calculate a50:15 . =
l-A€o?# = 0.487452

£
"

(A) 9.6

(B) 9.9

(C) 10.2

✓ (D) 0 10.5
(E) 10.8

Exam MLC: Spring 2018 –7– GO ON TO NEXT PAGE

5. An insurer issues a 3-year deferred whole life annuity-due of 100 per year to (80).

You are given:

(i) Mortality follows the Illustrative Life Table.

(ii) f (k , k 1) is the k-year deferred one-year forward rate.

(iii)

f (k , k 1),
f (0,1) f (1, 2) f (2,3) f (3, 4)
k 4,5, 6,...
0.04 0.045 0.05 0.055 0.06

Calculate the expected present value of the annuity.

3PM ypqo 100 off

.

+
(A) 341

(B) 343 (1.04×104541,05)

(C) - 345
4*045711.0514055>66.50
+278.25
(D) 347

(E) 349 1344.75T

Exam MLC: Spring 2018 –9– GO ON TO NEXT PAGE

6. A single premium, 10-year term insurance policy with death benefit of 100,000 is issued
to (40). The benefit is payable at the moment of death.

You are given:

(i) The single premium is 3144.

(ii) Mortality follows the Illustrative Life Table.

(iii) Deaths are uniformly distributed over each year of age.

=P
matter , but
(iv) i 0.04 shouldnt
watch forth 10 year
-

but term

µ
.
.

Calculate the probability that the present value of the loss at issue is more than 75,000.

]
[
P 100000 vT4o 3144 I 75,000
(A) 0.001
-

(B) 0.006

(C) 0.011
=

p[ 100000540=78144 ]
(D) 0.016
[ vtao = 0.78144 )
✓ (E) -0.021

=P [ t.io
<
mamma ]
"

G.
287925121

(l -287925121 )
& lqg
-
=

46.287925/2 ,

287925121 )
+
lyq C.

= 9116088.372

/
l46jHf÷54 10.02116118cL
-

Exam MLC: Spring 2018 – 11 – GO ON TO NEXT PAGE

7. For a 20-year deferred annuity-due issued to (45) that pays 150,000 annually for life, you
are given:

(i) Premiums of G are paid annually during the deferral period.

(ii) First year commissions are 40% of premium.

(iii) Commissions for years 2 through 10 are 10% of premium.

(iv) Commissions for years 11-20 are 5% of premium.

(v) a45:10 6.25; a55:10 6.00; a65 7.40

(vi) 10 E45 0.30; 10 E55 0.27

-1.30Gt
(vii) Premiums are calculated using the equivalence principle. 056inch :c 07
+ .

.o5G' a

Gains zoeas 15000066g 45.27

'

Calculate G . :@

05.6.25 )
G( (6.25+3.6)*95=3
-

(A) 12,580
7.4
27.150000
.

= 3.
(B) 12,680 • .

(C) € 12,780 G= 8991%035=(12780-3838)

(D) 12,880

(E) 12,980

Exam MLC: Spring 2018 – 13 – GO ON TO NEXT PAGE

8. Jenn and Dave are both age 75 with independent future lifetimes. They purchase an
insurance policy which pays 100,000 immediately on the death of Jenn provided she dies
after Dave. Premiums are payable continuously at a rate P per year while both lives are
alive.

You are given:

(i) A75 0.6091; A75:75 0.7228

(ii) i 6%
future lifetimes
distributed indep
.

identically
.

D have
Calculate P. J and
the time
last half
.

Jen dies
There for
(A) 4600
100000 A'at .
0.5
(B) @ 5200
50000 ( 2 (-60917--7228)=24770
(C) 7600 APVFB
=

{r
-575¥ ( 4.75725)

2477%
(D) 8600 =P I =P
APRFP Points
=
#

(E) 10100

Pt ,astr54 = 15206.78¥

Exam MLC: Spring 2018 – 15 – GO ON TO NEXT PAGE

9. A life insurer sells identical fully discrete whole life insurance policies to 1000
independent lives age 45. Premiums are determined using a profit test of the portfolio.

You are given the following profit test assumptions and results:

(i) Mortality follows the Illustrative Life Table.

(ii) The risk discount rate is 6%.

(iii) The Net Present Value for the portfolio is 10,000,000.

(iv) The profit margin is 15%. =

NI
1000 P iiys
Calculate the annual premium for each policy.

(A) 4024
P= 4724.078392mg
(B) - 4724
(C) 5424
(D) 6124
(E) 6824

Exam MLC: Spring 2018 – 17 – GO ON TO NEXT PAGE

10. A whole life policy with Critical Illness benefits is issued to a Healthy life age 60. The
insurer uses the following multiple state model to value the benefits:

Healthy 50000 Critically Ill

:
0 1

oo 000 50000

Dead Dead
2 3

The premium P is payable continuously while the policyholder is Healthy. A benefit of

50,000 is paid immediately on diagnosis of Critical Illness (CI), with another 50,000 paid
on death after CI. If the policyholder dies without a CI diagnosis, the full 100,000 is paid
immediately on death.
use
bk
You are given the following information: Can't into
entry

x
00
a
x A01
x A 02
x A 03
x A 13
x
← of

60 10.989 0.390 0.181 0.280 0.546

a9tgtete1matths.PCaaiy-loooooAaoo2t5ooooAwolt5ooooAio3@P-5lk0Y.ab9E1469s.I
Calculate P.

(A) 4300

(B) 4700

(C) 5100

(D) 5500

(E) 5900

Exam MLC: Spring 2018 – 19 – GO ON TO NEXT PAGE

11. For a fully discrete whole life insurance of 250,000 on (55), you are given:

(i) The annual premium is 5,000.

(ii) Mortality follows the Illustrative Life Table.

(iii) i 0.06

Calculate the probability that the insurance company will make a profit on this policy.

(A) - 0.524 P[ 250000 vk.tl/5ooo(tvdk55I

) ]
(B) 0.563 r 55+1
5ooYd ]
p[ (250000+5001)
'

<
✓
(C) 0.607

0.261083744 ]
(
k55+
1

(D) 0.648 <

P ✓

(E) 0.683
hl£71ln( ] i. or 's

P[
7
14-5+1
23.04683765 ]

P [ 1<55 722.04683765 ]

=p [ Kss ± 23 ]
7%55=(0-524294975)
=L

Exam MLC: Spring 2018 – 21 – GO ON TO NEXT PAGE

12. For a 20-year endowment insurance of 1,000,000 on (40), you are given:

(i) The death benefit is paid at the end of the year of death.

(ii) Premiums are payable monthly.

(iii) Deaths are uniformly distributed over each year of age.

(iv) Mortality follows the Illustrative Life Table. 334266.7018

"

(v) i = 0.06
APVFB = 100000µA %
-
soeyottaotzofyo )

Calculate the monthly net premium. APVFP =

i2Pii4Y?zq

=l2P( 1.00028 iiyonoy

-

. 46812/1 2¥40
-

)
(A) 2413

(B) 2426 =p ( 137.09644372

(C) 0 2438 p=2438.l86535@

(D) 2451

(E) 2463

Exam MLC: Spring 2018 – 23 – GO ON TO NEXT PAGE

13. For a Type A universal life insurance policy on (55), with a death benefit of 500,000, you
are given:

(i) The account value at time 10 is AV10 66,600.

(ii) Annual premiums of 10,000 are paid at the beginning of each policy year.

(iii) Expense charges, payable at the beginning of each year, are 120 plus 5%
of premium.

(iv) The cost of insurance rate in year 11 is 15 per 1000.

(v) ic iq 0.04
500000
-

AY ,
a
Calculate the Additional Death Benefit for this policy at the end of policy year 11.

(A)
@
427,390 A .v , ,=
(6600+100001957.120-5000004.4800*1
6
- v.
Yjoo ( Hi )
(B) 429,490

(C) 432,390 72608.32487

=

(D) 433,390
71519.2µs
(E) 434,990 ADB "
= 1427391.675¥

Exam MLC: Spring 2018 – 25 – GO ON TO NEXT PAGE

14. For a fully discrete 20-year term insurance issued to (35) with face amount 1,000,000,
you are given:

(i) The annual net premium for this insurance is 3489.

741
(ii) Mortality follows the Illustrative Life Table.

(iii) i 0.06
4=9149383.397
l45 .

45.4=4256 .lyj9
(iv) The force of mortality is constant between integer ages.

Calculate the net premium reserve at time 10.4.

v.
6

if 3489 )¢tiT4
Vt
=
1000000 . 4845
(A) 15,630

(B) 15,780
+
.4Pu5€.4✓ )
(C) 15,930 |o✓ =
1000000 Ads
:p
.
-

3489£45 :
in

(D) 16,080 26686.12514

40537.6872
-

(E) € 16,230 =
13851.56206 → ( × )

998399441 E)
P45= 145.4445
→

4
= .

io .yV=Tfl622988388

Exam MLC: Spring 2018 – 27 – GO ON TO NEXT PAGE

15. For a fully continuous whole life insurance of 100,000 on (50), you are given:

(i) 50 t is a continuous function of t.

(ii) 60 0.013

(iii) 0.04

(iv) t V is the gross premium reserve at time t .

(v) 10 V 18, 700

(vi) Maintenance expenses are 5% of the premium, payable continuously.

(vii) Claims expenses are 2.5% of the death benefit.

(viii) The gross premium rate is 2700 per year.

1000004.025
(
18700
) @B)

¥223.63
d ) -

(18704+27001.95)
-

Calculate t V at t 10. = .
04
dt

(A) 2148

✓g 2224
(B)

(C) 2256

(D) 2314

(E) 2391

Exam MLC: Spring 2018 – 29 – GO ON TO NEXT PAGE

16. For a fully discrete whole life insurance of 1000 on (40), you are given:

(i) 1000 q40 4.23

(ii) i 0.06

(iii) a40 13.25; a41 13.04; a60 9.72

(iv) A40 0.25; A60 0.45

(v) V is the net premium reserve at the end of year 20.

20

(vi) V FPT is the Full Preliminary Term (FPT) reserve at the end of year 20.
20

-41.8138-67350
Calculate 20V 20 V FPT . = iooo
( -

f
9¥57 -
Ct -
9iF÷y ))

(A) 12
old
ZOVFPT =
,q✓ on
a 41
year
(B) 13

(C) 14

(D) 15

(E) 16

Exam MLC: Spring 2018 – 31 – GO ON TO NEXT PAGE

17. For a whole life insurance of 100,000 on (45), you are given:

(i) Gross premiums of 900 are paid every ½ year.

(ii) The death benefit is paid at the end of the ½-year of death.

(iii) Mortality follows the Illustrative Life Table.

(iv) i 0.05

(v) Renewal expenses are 10% of the gross premium.

(vi) Deaths are uniformly distributed between integer ages.

(vii) The gross premium reserve at duration 10.5, immediately before the
premium payment, is 10.5V g 16,074.

Calculate the gross premium reserve at the end of the 11th policy year, 11V g .

(16074+9001.9) )
"

100000.5855 .s
2

1.05 =

(A) g16,930
(B) 16,980
+
.
51755.5 ,
,V8
(C) 17,010

lss ¢tl → ( x )

7/2=8602148
=

(D) 17,220 .
,

(E) 17,320
nV8=/l6927.o9l3T_

Exam MLC: Spring 2018 – 33 – GO ON TO NEXT PAGE

18. You are given the following health-sickness model:

Healthy Sick
0 1

Dead
2

For a certain age x, you are given:

-

02 12
(i) x 5 x 5 0.0020

(ii) At t 5,
d
dt
00
t px = 0.0030.to/8=.5pY..oo2-sPx00..0o2=sPitmxI.spioCpixistpxI )
Axis )
d 01
(iii) At t 5, t px 0.0012 =
spirits - sPx" ( pull #
+
dt

Calculate 5 p x02 spoxhtspxoltrpoxo = 1

⇐it Haiti
⇒
(A) 0.05

(B) 0.10

(C) 0.15

(D) 0.20

(E) 0.25

Exam MLC: Spring 2018 – 35 – GO ON TO NEXT PAGE

19. Mark is covered under a defined benefit pension plan. You are given:

(i) The annual benefit payable as a life annuity-due is 2% of the 3-year final
average salary per year of service. 02.30
. (562+563+564) ↳
.

(ii) Mark retires at age 65 with 30 years of service.

e.
(iii) Mark’s salary in his final year of employment was 100,000.

(iv) At the start of each of the last three years of employment, Mark’s salary
increased by 3%. Say Scez 100000/1.032
=

1000004 ,oz =

(v) Mortality follows the Illustrative Life Table. oius= 9.8969

(vi) i 0.06 APV Life annuity =
58269.39391×9=576686.3646
(vii) Mark chooses to take his benefit as a 10-year guaranteed whole life
annuity-due.
dat iofasii 75 10.68805925
'

=
=

Calculate the annual payment he will receive using the equivalence principle.

576686.3644 µ .

(A) 52,400

68805925=153956.134680
(B) 52,800

(C) 53,200

(D) 53,600

(E) 54,000

Exam MLC: Spring 2018 – 37 – GO ON TO NEXT PAGE

20. XYZ offers a pension plan with the following lump sum death-in-service benefits,
payable immediately on death:

10,000 for each full year of service on death in service between ages 64 and 65.
15,000 for each full year of service on death in service between ages 65 and 66.

You are given:

(i) Death is assumed to occur half-way through the year of age.

(ii) Decrements for this pension plan follow the Illustrative Service Table.

(iii) i 0.05

(iv) XYZ uses the Traditional Unit Credit funding method.

Calculate the normal cost for this benefit for a new employee who is age 50.

✓ PM ✓
Cf Epr midyear exits
+ + ✓
=
+ + ,
t
(A) 60

,ypfo⇒
4 's
(
'
10000 o ) gay
TV
v
(B) 70 =

isPso⇐
55 ' °
(
'
15am
=

(C) 80
+ o
) v
gas

(D) @ 90 EPV mid -

year
exits =
O we don't
pay anything
51
from to
for exits
50 .

(E) 100

7=(90-35)
lathe
"

G- 4on # v

eff
=

" '

.ie#ti5oooioF4rzaY4gon)
5 '

45,4ps , quo
"

10000 (1) 1500011 )

'

t v
r
13ps qua
t.lv
,
=

( =
oooo clot "7

Exam MLC: Spring 2018 – 39 – GO ON TO NEXT PAGE

 at least Prof state 0
before
I Prof inactive once
exiting
=

becoming
a .
.

Fmonths
problem :
we don't know the time units
forth µ .

Assume time is counted in months

first
least time 7 ]
=

1- P[ staying
in Oto at

7 " 2

rate 2=7 ]= / -
e-
R.v.io
I P [ exponential
.
.

=
-

=
0.753
so it seems time is to be counted in
years
.

7/12 '
2
✓
11
-

= 1 -

e = O .

lb . i
/ spot MY sps ←
"
ds

eillt
)
1
's

=
its .
.z . ds

zeioltft
's
e- do
'

= .

entered ( )
zentt
= -

( jolt )
.2t
=
2 -
e- ✓

"

/ 100006.05T It
it
1. b. ii
z( e- .

e- .2t) .1.
.

nstdt
" st
e-
'

2000%1
.

2ooo( ( III ) -

( iff ) )= 87.63324557
1C past
hse state numbers to count transitions .

PYNMLC
• ' t .

'
aet

@
inae

⇒
.

.z
.

z
-

1 is 2

ld spo°°+ gpo02

1 stpo .ph?s.tpFdt
"

)(
as
e- +

lbi
part
+

¥2 Est )
' t

=/ (
"

spirit e-
"

,→Ps It
tpo
.

1) ei2(
5 t
)
5z(
.

25

f. It
at
e- it
'

+
e- .
e- .

Id)
5

)
lt
its '
e. It
'

e-
+
.2e -

0.4773
.

if ))
( .÷C.
(5)
its (
.

'

t.si -
-

-
w )
2
200000=11
a

Exit
nay ,
,
tastiest
I Ex I
Ixy 15.5
-
= + =

×g y

tftx the
5
= +
train -
= i.

✓
12903.22581 12900
×
= 20000%5.5 = a

use
12903
=

2b
Var ( 12903 YI ,
)= 129032 Var ( Fxg ) = 129032.4195

#
rare var ( 17¥ ) =
fz rat E.)
= 4.195

'

A' ( AI
;)
2
VMCE . )
=

× ,
-

Axy
2

( AI +
Ay Axy )2
2A×t2Ay
.

-
=
-

= 13 t .

(I -

. 21 ) -

1^23+19--35 )

= 0 .
015 /

SD .
= 12903 Fm =/
26425.786427
.
l 200000 .
75×5
xy25×2 ,×y
C .
=
+ .

t;⇒aI))X
( .25( '
= 75455 ) +

13953.48838 an
→

X=

[5×4*5]
DEATH ]
Etx

ratty
E
vtxy ,
rtxy ) =
E .

Ax ( titty An )
E[
-

1d7%ov(
= -

AIYAI
Ajax
=
Elvtxvtn ] -
-
taxi

#
'
t
innit GTDEATD -

( 7
-

A' AIYAI AIYAJ Axy

At
+
-

=
×
y

( ,
-

AIHAIAT )
AI ,
-

"
dii )
car ( a
#
.at#=e/foI)ItfI))-axyaxu=EffFHkr
)]
"
-

ixlaxtarixd
t

EC ÷ ]Ef¥y
"
' -

( ,

fix a- -

oixyax -
Exnaiy -
Ex }
y
=
tax . Ex )( aim -
Eu)
,
Zdiii )

Eat
Var ( .75X

.25Xa*p)
Ea
752×2 Van ( ) + 752×2 Van ( ) + 2. 75.25×2
Corley Ea )
Egg
=
. ,

4.252×2 C. 352 )
752×2 F otaz 21 -

4.19
.

=
.
.

t.IE ) )
+275.25×2
( f.IE t.tt#ljd
.

¥847222
.

33831.01519
1/25.87847222
2.359375+1.519097222+2
)
=
X2(

S .
D .
=
X
}
-1.326+400+45%75
"

Going
=
10001775+5004-5-1.08 Gaps
t

662.4*75=1000
'=Ap ,

500A +400
G( .
92 .ci#s-.32)= (662.46+45) 'd post ,→

5l05.74+Z95.745t4= = 5801.4-8382
G= 6.31964
6. 31964

920 ✓
G= 918.0085923 a

9183
use

,r=(36IT
b)
qastilfts
(9/866)-400-441.06=4000+5001

qtatotpta
¥9.6587
(36.50+9181.92)-441.06=(2000+500)
ZV

foil term insurance

that
3c pumimfnyeml is
year

=
1000 ✓
of # EH8.FI

3d 10001775
48.7Gt vp Pinza
=

662.46 'd
=
75

4780.97382-48.76
p=
' '
( l -
÷
-05169 ) (
6.ge/qD=76lil6~r76oVwseF6I
3. e)
,
✓ = 0 always .

✓
Ptt
But way
1000
vqzs
.

1.06=1000
fast i

any ,

(0+761)
|iv=J 1.06 = 2000

1735.24J
ZVI
qa at 2✓ Pace

under FPT help to better

3 f) Smaller
early reserves

the
offset initial expenses ,
which improves

policy life
distribution earlier in the
profit
.
4 a

p= 100000A ' '

11274.34378
→ ×
so
=

pCHi7-qqo.l0oo00_N-4263.134VPbo@263tP7CHi7-ofq1ooOo0_t.zV

Pool

8445.771848
a
zV=

845orusel844D4bCVtfC.qH-7s71.o7-1o00o0i.85iq81Prn-zp42.ll_o.2@flt.85qaDl.o

's )

aftadvidendih
Belford ( .85qq)( I -05 )
µ (
-

zfzo✓use\82# (822-63)
method
265.72M¥
also Checked PR , using
some , got
,

4C NPVC 37
-1000+265.72/1 ,
) = .

8224 ,r( t.85q.DK 2)

.

+
,

)
( 1- 85qq)( I
-2

894.9% ,
.Il
+ ,

.85qq)( 1- .o5 )

=
1188.63J
4dci7 )
265.72 =
. 3 ( Pudivpr

( 26¥72
620.015
Div = .7 ) =

620.015 =
X Ajit
x -1911.783
-

4dcii7
,vB= 911.78A 'IY -

=
620.015

AjY
B
✓ 0=632.7570844
2
=
9/1.78 -

(4263*-620,015+130006957-75) 1.07

=
100911.78 8598
.

.2 (8446+632.76) ( t .85q , ,)(.o5 )

(8446+632.76) ( I -

-8588171.95 )

=
2775.40

:#
✓
I 830
Pr

full ILT price butdontrealize full ILJ

4 e) Prt because we charge cost ,

exceeds ILT
and because interest price expectation
.

on
5-
VMCL ;)
) Var( 2 by independence
a

i 2) = .

NVML
= ;

fN(
#
F)
0000-20
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Said
=
s.D.CL ) =

Eu )
=
Fu

A
*
(
Varlh ; )= (
€7
#
8D
2

# qo x2= 0.026839938 -7

Ew )
=

Var ( y
-
-
=

iooootplrjvar
(× )
a

s.D.LY
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(1638.29-+3.2710)
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.

5b
.
= -

( H )
go n
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( 0.5456
2A qo = I - 202 Ifo =/ -
0.1 4.544

of ( a+bP ) at BP
→
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}oo)/E=
=
-

so diversifiable .

✓
5897.84 a 5900

#:
i ) =
oooo 20.1

5898N
LI
use

(10000+20.1300) Eta = 5947.897023

ii ) 5. D .
=

I 595W
p×*=e%+M*Fd5 efotnasoids
use
,

efotmxtsds
t.at
e.
oh 594$
= ,
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* 1- .o5( 5.855 )= 70725

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or -a•* =
.

of =/ ftp.Pdtfo.etrmttpxdt
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=
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2aIP
1
1- 20
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=

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f- .
09

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Van ( Zqf ) =
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400 5898 up
.6
( HIM )
'

var
400 5948 w .

p .
.

E [ van ( L1µ7]= 400.5918

E[L|µ]E
( L; / Doesnt work ] = 10000 Ago
-
Boo I @

) 13005W
10000 ( tdaoo
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=
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HOOOAIP 1300 Eat =

539
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-

[
-

E L ; I works =

( Eftlr ]
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✓ air
=
4002 ( 52565.76 )
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52565.76 )
Van ( L ) = 400-5918+4002 (

5. D. (2) =
91721.80112

5 c) Var ( h ) =
N .

5918 t NY 52565.76 )

with is
N policies

to
limvaymf no longer goes zew ,

but

nathuto
552565.76
5 d) the new
drug created dependence among
the
future
the block
This
entire

lifetimes of the customers means

.

to the outcome
of the
business may react similarly
of
could result
in a Large change
trials which
drug ,

to the
block totals
.
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tea Finn 60404
604.0438

k¥1415165
GO

26 27

me8
01776011.02739
( 40 years )( .

=
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-

604.02 )39

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645 65
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29
has years

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9.431551132
000281989697.46812
=

Gb ) 0
9.5617 1.

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(
=

46835 4.598 .
+4.362 ...
)= 1419644.1592J

a
0
thisisthetotal ,

has
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Finn
or +
co
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if (1) 600001 )
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(
1020 0.404 .
. .
+ .
38326 ...

803.01
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803.01 ( 1.06
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)( 1
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.
00122 ) .tl#.T
Gcii ) Oscat
419644.16+6
=
v. 5. spay 1.
"j?
5) 97500677129.5 )a" a

exits EPV
midyear

*
getter 224827.462

✓
+
V Pay ←
,
222461.4738
( M

,V= 10000013076017) iiag

C o=/27644.76⇒
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i ) Finn
will
thus the normal
cost
I .
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salaries are
projected ,

lay
be bk C = ✓
Prs Y

) Ota

smalls
ii

EPV mid exits

will of year ,

IV will be unchanged , as

Thus the contribution

but •
V will be larger .

will be | because

pay ✓ -
V
mid exits ✓ •
E PV
+

C year ,
.

- w

some Larger .