a) Waweru joined the staff pension scheme on 1st January 2008, the total monthly remittances (his and employer’s) to the scheme at the end of each of the last 12 months is Ksh 6,000. The fund manager has declared a rate of interest of 15%, compounded monthly for the year 2008. Determine the total amount to the credit of Waweru’s account as at 31st December 2008.
(10 marks)
b) A bond of Ksh 150,000 redeemable in 15 years at 105 pays 4% coupon. What is the purchase price to pay 6%. Show the accumulation of discount by schedule. (10 marks)
c)Using the English Life Table No.12 for Males, find the Probability of a person aged 40;
i) Surviving to age 50 (2 marks)
ii) Dying before age 50(4 marks)
iii) Dying between the ages of 60 and 80 (4 marks)
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