SOA Exam FAM Sample Question 6.37
Study guide: Exam FAM
For a fully discrete whole life insurance policy of 50,000 on (35), with premiums payable for a maximum of 10 years, you are given:
(i) Expenses of 100 are payable at the end of each year including the year of death
(ii) Mortality follows the Standard Ultimate Life Table
(iii) i = 0.05
Calculate the annual gross premium using the equivalence principle.
[A modified version of Question 9 on the Spring 2016 exam]
- A) 790
- B) 800
- C) 810
- D) 820
- E) 830
Answer this question and see the worked solution