SOA Exam FAM Sample Question 6.14
Study guide: Exam FAM
For a special fully discrete whole life insurance of 100,000 on (40), you are given:
(i) The annual net premium is P for years 1 through 10, 0.5P for years 11 through 20, and 0 thereafter
(ii) Mortality follows the Standard Ultimate Life Table
(iii) i = 0.05
Calculate P.
[A modified version of Question 8 on the Spring 2014 exam]
- A) 850
- B) 950
- C) 1050
- D) 1150
- E) 1250
Answer this question and see the worked solution