1. Insurers can still show a profit in a given year, even if they have paid out more in claims than they have collected in premiums, due to:
Conservative mortality tables
Contingency reserves
Policy dividends
Investment earnings
2. Find the accumulated value after 3 years of an initial investment of 10,000 if:
a) i=0.18
b) i^(4)= 0.10
c) d^(4)= 0.10
d) d= 0.090