1.A life office issues a three-year unit-linked endowment policy to a male life aged exactly 40. A premium of Rs10,000 is payable at the start of each year. The allocation proportion is 90% in Year 1 and 98% in year 2 and 99% in year 3. At the end of the year of death during the term, the policy pays the higher of Rs 50,000 and the bid value of units allocated to the policy after deduction of the fund management charge. In addition, a bonus of 5% of the (bid) value of the unit fund is payable at maturity. The life office makes the following assumptions in projecting future cash flows: Mortality AM92 Ultimate Initial expenses: Rs1000 incurred at outset in year 1 Renewal expenses: Rs500 incurred at the start of years 2 and 3 Fund management charge: 2.5% pa, taken at the end of each year prior to payment of any benefits Non-unit fund interest rate: 4% pa Bid/offer spread: 2.5% Unit fund growth rate: 8% pa Create tables to show the following: (i) the growth of the unit fund (ii) the profit signature, assuming no non-unit provisions are held 2. A life office issues an annuity to a woman aged 60 exact and a man aged 62 exact.The annuity of Rs.20,000 pa is payable annually in arrears for as Jong as either of the lives are alive. The office values this benefit using the following basis: Interest: 4% per annum Mortality: Female: PFA92C20 Male: PMA92C20 Calculate the expected present value of this benefit. 3. The in force expected cashflows for a five-year unit-linked policy under which no nonunit reserves are held is: (-50.20, -22.50, -18.00, 40.13, 45.75) Calculate the reserves required if negative cashflows other than in Year | are to be eliminated and give the revised profit vector allowing for the reserves.Assume that reserves earn interest at a rate of 5% per annum. Ignore mortality. 4. A pension scheme provides a pension on age retirement of 1/60th of final pensionable salary for each year of service, with part years counting proportionately. Final pensionable salary is defined to be the average salary over the 3 years prior to retirement. Members contribute 6% of their salaries to the pension fund. One member aged exactly 45 has 15 years of past service and earned Rs.30,000 in the last year. Using the Pension Scheme Tables from the Actuarial Formulae and Tables, (i) the expected present value of this member’s past service benefit (ii) the expected present value of this member’s future service benefit (aii) the expected present value of this member’s future contributions. 5.Caleulate peo. ¢5 and 3 q 42.52: using AM92 Ultimate mortality.