PRACTICAL BUSINESS OF LIFE INSURANCE. 735 



Similarly to the annual premium, any other mode of payment may 

 be determined ; say, for instance, one single premium for life. At 

 age 90 the present value of all future death-claims is 8779.10, and 

 there are 8^7 persons to provide for the same ; therefore, each one 

 must contribute ^fy-^, or $0'91987 in advance, that being the one sin- 

 gle premium for life. 



The limits of a magazine article do not permit more extended 

 illustrations, but the reader can readily reason out for himself how 

 premiums, insuring for life in a limited number of payments, and 

 various other adaptations in vogue, all based upon the same principles, 

 may be arrived at. 



Let us now apply the annual premium of $0 '49432, as above ascer- 

 tained, to the insurance fund, and follow its working to the end, com- 

 puting interest at 4-|- per cent. : 



Age 90 Living 847 x -49432 = $418 69 x 1-045 = $437 53 



Death-claims at the end of the year, 385 00 



Balance, 52 53 



Age 91 " 462 X -49432 = $228 37 



Balance on hand, 52 53 



$280.90 X 1045 =$293 55 

 Death-claims at the end of the year, 246 00 



Balance, $47 55 



Age 92 216 X -49432 = $106 77 



Balance on hand, 47 55 



$154 32 X 1-045 = $161 27 

 Death-claims at the end of the year, 137 00 



Balance, $24 27 



Age 93 " 79 X -49432= $39 05 



Balance on hand, 24 27 



$63 32 X 1-045 = $66 18 

 Death-claims at the end of the year, 58 00 



Balance, $8 18 



Age 94 '' 21 X -49432 = $10 38 



Balance on hand, 8 18 



$18 56 X 1-045 = $19 39 

 Death-claims at the end of the year, 18 00 



Balance, $1 39 



Age 95 " 3 X -49432 = $1 43 



Balance on hand, 1 39 



$2 87 X 1-045 = $3 00 

 Death-claims at the end of the year, 3 00 



