SOA Exam FAM Sample Question 7.3
Study guide: Exam FAM
For a whole life insurance of 1000 with semi-annual premiums on (80), you are given:
(i) A gross premium of 60 is payable every 6 months starting at age 80
(ii) Commissions of 10% are paid each time a premium is paid
(iii) Death benefits are paid at the end of the quarter of death
(iv) _{t}V denotes the gross premium policy value at time t, t \geq 0
(v) _{10.75}V = 753.72
(vi)
t |
l_{90+t} |
|---|---|
| 0 | 1000 |
| 0.25 | 898 |
| 0.50 | 800 |
| 0.75 | 706 |
(vii) i^{(4)} = 0.08
Calculate _{10.25}V.
[A modified version of Question 17 on the Fall 2012 exam]
- A) 680
- B) 690
- C) 700
- D) 710
- E) 730
Answer this question and see the worked solution