SOA Exam FAM Sample Question 6.41
Study guide: Exam FAM
For a special fully discrete 2-year term insurance on (x), you are given:
(i) q_{x} = 0.01
(ii) q_{x+1} = 0.02
(iii) i = 0.05
(iv) The death benefit in the first year is 100,000
(v) Both the benefits and premiums increase by 1% in the second year
Calculate the annual net premium in the first year.
[Question 9 on the Fall 2016 exam]
- A) 1410
- B) 1417
- C) 1424
- D) 1431
- E) 1438
Answer this question and see the worked solution