SOA Exam FAM Sample Question 6.15
Study guide: Exam FAM
For a fully discrete whole life insurance of 1000 on (x) with net premiums payable quarterly, you are given:
(i) i = 0.05
(ii) \ddot{a}_{x} = 3.4611
(iii) P^{(W)} and P^{(UDD)} are the annualized net premiums calculated using the 2-term Woolhouse (W) and the uniform distribution of deaths (UDD) assumptions, respectively
Calculate \dfrac{P^{(UDD)}}{P^{(W)}}.
[A modified version of Question 9 on the Spring 2014 exam]
- A) 1.000
- B) 1.002
- C) 1.004
- D) 1.006
- E) 1.008
Answer this question and see the worked solution