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MATEMATIKA KEUANGAN - Matematika IPB

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Capital Redemption Policies (Kebijakan Pengembalian Modal)<br />

Introduction and Premium Calculation<br />

Example<br />

Example 6.1.2<br />

Consider the capital redemption policy described in the<br />

previous example. Suppose, however, that, in order to allow for<br />

an increases in expenses over the duration of the policy, the<br />

company calculated the annual premium on the basis of the<br />

same interest rate and initial expenses as above but allowed for<br />

renewal expenses (associated with the second and each<br />

subsequent premium) of<br />

(a) £5 plus<br />

(b) an increasing percentage of each premium-the amount<br />

increasing linearly from 2.5% of the second premium to 5%<br />

of the final premium.<br />

Find the annual premium.

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