The answers are: 1832.79 and 779.26. <-- How do I get to those? Do you need to construct an emerging costs table to calculate these values?

Login

0 votes

For part a, you do not need to construct an emerging cost table. You can calculate the premium by setting up the equation of value and solving for the premium.

For part b, an emerging cost table (preferably using spreadsheet software such as Excel) will be the easiest method in order to work out the NPV for the policy.

- All categories
- BUS 1003H - Introduction to Financial Risk (45)
- BUS 2016H - Financial Mathematics (53)
- BUS 3018F - Models (69)
- BUS 3024S - Contingencies (61)
- BUS 4028F - Financial Economics (22)
- BUS 4027W - Actuarial Risk Management (46)
- BUS 4029H - Research Project (5)
- Mphil (1)
- Calculus and Pure Mathematics (4)
- Statistics (16)

...