SOA Exam FAM Sample Question 6.36
Study guide: Exam FAM
For a fully continuous 20-year term insurance policy of 100,000 on (50), you are given:
(i) Gross premiums, calculated using the equivalence principle, are payable at an annual rate of 4500
(ii) Expenses at an annual rate of R are payable continuously throughout the life of the policy
(iii) \mu_{50+t} = 0.04, for t > 0
(iv) \delta = 0.08
Calculate R.
[Question 8 on the Spring 2016 exam]
- A) 400
- B) 500
- C) 600
- D) 700
- E) 800
Answer this question and see the worked solution