Exercise 6.5 Consider a fully discrete 10-year term insurance issued to a select life aged 50, with sum insured $100 000. Assume that mortality follows the Standard Select Life Table, and assume an...

Extracted text: Exercise 6.5 Consider a fully discrete 10-year term insurance issued to a select life aged 50, with sum insured $100 000. Assume that mortality follows the Standard Select Life Table, and assume an interest rate of 5% per year. (a) Write down an expression for the net loss at issue random variable. (b) Calculate the net annual premium.