SOA Exam FAM Sample Question 7.26
Study guide: Exam FAM
For a special fully discrete 2-year endowment insurance on (x), you are given:
(i) The death benefit for year k is 25,000k plus the net premium policy value at the end of year k, for k = 1, 2. For year 2, this net premium policy value is the net premium policy value just before the maturity benefit is paid
(ii) The maturity benefit is 50,000
(iii) p_{x} = p_{x+1} = 0.85
(iv) i = 0.05
(v) P is the level annual net premium
Calculate P.
[A modified version of Question 13 on the Fall 2016 exam]
- A) 27,650
- B) 27,960
- C) 28,200
- D) 28,540
- E) 28,730
Answer this question and see the worked solution