SOA Exam FAM Sample Question 6.48
Study guide: Exam FAM
For a special fully discrete 5-year deferred 3-year term insurance of 100,000 on (x) you are given:
(i) There are two premium payments, each equal to P. The first is paid at the beginning of the first year and the second is paid at the end of the 5-year deferral period
(ii) The following probabilities: (as printed)
(iii) _{5}p_{x} = 0.95
(iv) q_{x+5} = 0.02, \quad q_{x+6} = 0.03, \quad q_{x+7} = 0.04
(v) i = 0.06
Calculate P using the equivalence principle.
[Question 9 on the Fall 2017 exam]
- A) 3195
- B) 3345
- C) 3495
- D) 3645
- E) 3895
Answer this question and see the worked solution