SOA Exam FAM Sample Question 7.27
Study guide: Exam FAM
The gross annual premium, G, for a fully discrete 5-year endowment insurance of 1000 issued on (x) is calculated using the equivalence principle. You are given:
(i) 1000P_{x:\overline{5}|} = 187.00
(ii) The expense policy value at the end of the first year, _{1}V^{e} = -38.70
(iii) q_{x} = 0.008
(iv) Expenses, payable at the beginning of the year, are:
| Year | Percent of Premium | Per Policy |
|---|---|---|
| First | 25% | 10 |
| Renewal | 5% | 5 |
(v) i = 0.03
Calculate G.
[Question 17 on the Fall 2016 exam]
- A) 200
- B) 213
- C) 226
- D) 239
- E) 252
Answer this question and see the worked solution