University of Technology Jamaica Thieles Differential Equation Questions

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University of Technology Jamaica Thieles Differential Equation Questions

Mathematics, University of Technology Jamaica

University of Technology Jamaica Thieles Differential Equation Questions

Description

Consider the following information for a given policy :

a. ? = 0. 03

b. Level premium ? = $3500

c. No expenses.

d. µ = 0. 0007

e. Benefit payment ? = $150, 000

(i) Using Thiele’s Differential Equation, solve analytically (using

calculus) for the policy value ???.

(ii) Find the unique solution to this differential equation clearly

showing why this is the case.

(iii) Describe the what happens to the policy value as ? ? ?.

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