SOA Exam FAM Sample Question 7.21
Study guide: Exam FAM
A special fully discrete 10-payment 10-year deferred whole life annuity-due on (55) of 1000 per year provides for a return of premiums without interest in the event of death within the first 10 years. You are given:
(i) Annual net premiums are level
(ii) Mortality follows the Standard Ultimate Life Table
(iii) i = 0.05
(iv) (IA)^{1}_{55:\overline{10}|} = 0.14743
Calculate _{9}V, the net premium policy value at the end of year 9.
[A modified version of Question 16 on the Fall 2015 exam]
- A) 11,540
- B) 11,650
- C) 11,760
- D) 11,870
- E) 11,980
Answer this question and see the worked solution