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Compare these pure endowment contracts that both take place over a 5 year time frame;
Portfolio A; expects to sell 300 contracts with a death benefit of 10000$ and a maturity benefit of 13000$ with an interest rate of 5% per annum with a death probability of 0.04 where qx=0.04 for t=10,1,2,3,4
Portfolio B: expects to sell 150 contracts with a death benefit of 10000$ and a maturity benefit of 17000$ with the same interest rate and death probabilty.
The insurer charges an annual premium of 110% of the annual net premiums for each contract. Also estimate the profitability levels of both contracts and the solvency.
Use R studio to analiyse and calculate the net premium by hand
