SOA Exam FAM Sample Question 6.51
Study guide: Exam FAM
For a special 10-year deferred whole life annuity-due of 50,000 on (62), you are given:
(i) Level annual net premiums are payable for 10 years
(ii) A death benefit, payable at the end of the year of death, is provided only over the deferral period and is the sum of the net premiums paid without interest
(iii) \ddot{a}_{62} = 12.2758
(iv) \ddot{a}_{62:\overline{10}|} = 7.4574
(v) A^{1}_{62:\overline{10}|} = 0.0910
(vi) \displaystyle\sum_{k=1}^{10} A^{1}_{62:\overline{k}|} = 0.4891
Calculate the net premium for this special annuity.
[A modified version of Question 14 on the Fall 2013 exam (as printed)
- A) 34,400
- B) 34,500
- C) 34,600
- D) 34,700
- E) 34,800
Answer this question and see the worked solution