Premium calculation
General · Mathematics
Study notes
Q: A 30-year-old buys whole life assurance A_30 = 0.25 (per ₹1). Annuity ä_30 = 15. Find net annual premium per ₹100000. Equivalence: P×ä_30 = A_30. P = 0.25/15 = 0.016667 per ₹1. Per ₹100000: ₹1666.67 yearly! Gross premium: add expenses/loading! (Level: same each year!)