SOA Exam FAM Sample Question 5.10
Study guide: Exam FAM
For a 10-year certain and life annuity-due on (65) with annual payments you are given:
i) Mortality follows the Standard Ultimate Life Table
ii) i = 0.05
Calculate the probability that the sum of the payments on a non-discounted basis made under the annuity will exceed the expected present value of the annuity at issue.
[Question on October 2022 FAM-L Exam]
- A) 0.826
- B) 0.836
- C) 0.846
- D) 0.856
- E) 0.866
Answer this question and see the worked solution