SOA Exam FAM Sample Question 4.7
Study guide: Exam FAM
For a 25-year pure endowment of 1 on (x), you are given:
(i) Z is the present value random variable at issue of the benefit payment
(ii) Var(Z) = 0.10E[Z]
(iii) _{25}p_{x} = 0.57
Calculate the annual effective interest rate.
[Question 6 on the Fall 2017 exam]
- A) 5.8%
- B) 6.0%
- C) 6.2%
- D) 6.4%
- E) 6.6%
Answer this question and see the worked solution