SOA Exam FAM Sample Question 6.7
Study guide: Exam FAM
For a special fully discrete 20-year endowment insurance on (40), you are given:
(i) The only death benefit is the return of annual net premiums accumulated with interest at 5% to the end of the year of death
(ii) The endowment benefit is 100,000
(iii) Mortality follows the Standard Ultimate Life Table
(iv) i = 0.05
Calculate the annual net premium.
[A modified version of Question 3 on the Spring 2013 exam]
- A) 2680
- B) 2780
- C) 2880
- D) 2980
- E) 3080
Answer this question and see the worked solution