SOA Exam FAM Sample Question 7.28
Study guide: Exam FAM
For a special fully discrete whole life insurance of 1,000 on (45), you are given:
(i) The net premiums for year k are:
\begin{cases} P, & k = 1, 2, \ldots, 20 \\ P + W, & k = 21, 22, \ldots \end{cases}
(ii) Mortality follows the Standard Ultimate Life Table
(iii) i = 0.05
(iv) _{20}V, the net premium policy value at the end of the 20th year, is 0
Calculate W.
[A modified version of Question 15 on the Fall 2017 exam]
- A) 12
- B) 16
- C) 20
- D) 24
- E) 28
Answer this question and see the worked solution