Actuarial Notes

SOA Exam FAM Sample Question 6.18

Study guide: Exam FAM

For a 20-year deferred whole life annuity-due with annual payments of 30,000 on (40), you are given:

(i) The single net premium is refunded without interest at the end of the year of death if death occurs during the deferral period

(ii) Mortality follows the Standard Ultimate Life Table

(iii) i = 0.05

Calculate the single net premium for this annuity.

[A modified version of Question 6 on the Fall 2014 exam]

  • A) 162,000
  • B) 164,000
  • C) 165,200
  • D) 166,400
  • E) 168,800

Answer this question and see the worked solution

Concepts tested

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