SOA Exam FAM Sample Question 6.27
Study guide: Exam FAM
For a special fully continuous whole life insurance on (x), you are given:
(i) Premiums and benefits:
| First 20 years | After 20 years | |
|---|---|---|
| Premium Rate | 3P |
P |
| Benefit | 1,000,000 | 500,000 |
(ii) \mu_{x+t} = 0.03, \ t \ge 0
(iii) \delta = 0.06
Calculate P using the equivalence principle.
[Question 11 on the Spring 2015 exam]
- A) 10,130
- B) 10,190
- C) 10,250
- D) 10,310
- E) 10,370
Answer this question and see the worked solution