Actuarial Notes

Exam DISC-IA Practice Question 203

Study guide: Exam DISC-IA

A buyer pays a single premium of $50,000 into a fixed deferred annuity. The insurer credits an initial rate of 3.5% for the first two years, and the contract guarantees a minimum rate of 1.5%. For the third year the insurer declares a renewal rate of 1.0%. What is the account value at the end of year 3, before any charges?

  • A) $52,283.92
  • B) $54,096.86
  • C) $54,364.67
  • D) $55,435.89

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