SOA Exam FAM Sample Question 6.8
Study guide: Exam FAM
For a fully discrete whole life insurance on (60), you are given:
(i) Mortality follows the Standard Ultimate Life Table
(ii) i = 0.05
(iii) The expected company expenses, payable at the beginning of the year, are:
- 50 in the first year
- 10 in years 2 through 10
- 5 in years 11 through 20
- 0 after year 20
Calculate the level annual amount that is actuarially equivalent to the expected company expenses.
[Question 2 on the Spring 2013 exam]
- A) 7.5
- B) 9.5
- C) 11.5
- D) 13.5
- E) 15.5
Answer this question and see the worked solution