SOA Exam FAM Sample Question 7.11

Study guide: Exam FAM

For a fully discrete whole life insurance of 10,000 on (45), you are given:

(i) $i = 0.05$

(ii) $_{0}L$ denotes the loss at issue random variable based on the net premium

(iii) If $K_{45} = 10$ , then $_{0}L = 4450$

(iv) $\ddot{a}_{55} = 13.4205$

Calculate $_{10}V$ , the net premium policy value at the end of year 10 for this insurance.

[A modified version of Question 17 on the Fall 2013 exam]

Concepts tested