SOA Exam FAM Sample Question 7.1
Study guide: Exam FAM
For a special fully discrete whole life insurance on (40), you are given:
(i) The death benefit is 50,000 in the first 20 years and 100,000 thereafter
(ii) Level net premiums of 875 are payable for 20 years
(iii) Mortality follows the Standard Ultimate Life Table
(iv) i = 0.05
Calculate _{10}V, the net premium policy value at the end of year 10 for this insurance.
[A modified version of Question 4 on the Fall 2012 exam]
- A) 11,090
- B) 11,120
- C) 11,150
- D) 11,180
- E) 11,210
Answer this question and see the worked solution