Question 7 (16 marks)
a) Assuming constant force of decrement over each year of age and given
m = 2, μ_x^{(1)} = 0.05 and t p_{30}^{(2)} = 1 - t/40 : 0 ≤ t ≤ 20,
Calculate:
i. t p_{30}^{(1)}
ii. 20 q_{30}^{(1)} under standard assumptions.
b) A 1-year term insurance policy pays RM5,000 at the end of the year if decrement occurs due to cause (1) during the year. Each decrement is assumed to be uniformly distributed in the multiple decrement table.
If q_x^{(1)} = 8/9, m_x^{(1)} = 9/250 and i = 0.05, calculate the net single premium.