SOA Exam FAM Sample Question 7.5

Study guide: Exam FAM

For a fully discrete whole life insurance of 10,000 on ( $x$ ), you are given:

(i) Deaths are uniformly distributed over each year of age

(ii) The net premium is 647.46

(iii) The net premium policy value at the end of year 4 is 1405.08

(iv) $q_{x+4} = 0.04561$

(v) $i = 0.03$

Calculate the net premium policy value at the end of 4.5 years.

[A modified version of Question 9 on the Spring 2013 exam]

Concepts tested