SOA Exam FAM Sample Question 4.8
Study guide: Exam FAM
For a whole life insurance of 1000 on (50), you are given:
(i) The death benefit is payable at the end of the year of death
(ii) Mortality follows the Standard Ultimate Life Table
(iii) i = 0.04 in the first year, and i = 0.05 in subsequent years
Calculate the actuarial present value of this insurance.
[A modified version of Question 5 on the Spring 2014 exam]
- A) 187
- B) 189
- C) 191
- D) 193
- E) 195
Answer this question and see the worked solution