SOA Exam FAM Sample Question 5.8
Study guide: Exam FAM
For an annual whole life annuity-due of 1 with a 5-year certain period on (55), you are given:
(i) Mortality follows the Standard Ultimate Life Table
(ii) i = 0.05
Calculate the probability that the sum of the undiscounted payments actually made under this annuity will exceed the expected present value, at issue, of the annuity.
[A modified version of Question 6 on the Spring 2017 exam]
- A) 0.88
- B) 0.90
- C) 0.92
- D) 0.94
- E) 0.96
Answer this question and see the worked solution