SOA Exam FAM Sample Question 6.5
Study guide: Exam FAM
For a fully discrete whole life insurance of 1000 on (30), you are given:
(i) Mortality follows the Standard Ultimate Life Table
(ii) i = 0.05
(iii) The premium is the net premium
Calculate the first year for which the expected present value at issue of that year's premium is less than the expected present value at issue of that year's benefit.
[A modified version of Question 1 on the Spring 2013 exam]
- A) 21
- B) 25
- C) 29
- D) 33
- E) 37
Answer this question and see the worked solution