SOA Exam FAM Sample Question 6.29
Study guide: Exam FAM
(35) purchases a fully discrete whole life insurance policy of 100,000.
You are given:
(i) The annual gross premium, calculated using the equivalence principle, is 1770
(ii) The expenses in policy year 1 are 50% of premium and 200 per policy
(iii) The expenses in policy years 2 and later are 10% of premium and 50 per policy
(iv) All expenses are incurred at the beginning of the policy year
(v) i = 0.035
Calculate \ddot{a}_{35}.
[Question 7 on the Fall 2015 exam]
- A) 20.0
- B) 20.5
- C) 21.0
- D) 21.5
- E) 22.0
Answer this question and see the worked solution