Ques:- From the following table of year premium for policies maturing at different ages.
estimate the premium for policies maturing at the age of 46.
age: 45 50 55 60 65
premium: 114.84 96.16 83.32 74.48 68.48
Sol:- x = a + uh
46 = 45 + u(5)
u = 46 - 45
5
|u =0.2|
x f(x) ∆f(x)
∆2f(x) ∆3f(x) ∆4f(x)
45 114.84
-18.68
50 96.16 5.84
-12.84 -1.84
55 83.32 4 0.68
-8.84 -1.16
60 74.48 2.84
-6
65 68.48
f(a+uh)=114.84+0.2(-18.68) +0.2(0.2-1) (5.84)
2×1
+ 0.2(0.2-1)(0.2-2) (-1.84)
3×2×1
+ 0.2(0.2-1)(0.2-2)(0.2-3) (0.68)
4×3×2×1
= 114.84 - 3.736 - 0.4672 - 0.08832 -0.022848
= 110.888032
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