SOA Exam FAM Sample Question 6.40

Study guide: Exam FAM

For a special fully discrete whole life insurance, you are given:

(i) The death benefit is $1000(1.03)^{k}$ for death in policy year $k$ , for $k = 1, 2, 3...$

(ii) $q_{x} = 0.05$

(iii) $i = 0.06$

(iv) $\ddot{a}_{x+1} = 7.00$

(v) The annual net premium for this insurance at issue age $x$ is 110

Calculate the annual net premium for this insurance at issue age $x + 1$ .

[Question 17 on the Spring 2016 exam]

Concepts tested