SOA Exam FAM Sample Question 7.31
Study guide: Exam FAM
For a fully discrete 3-year endowment insurance of 1000 on (x), you are given:
(i) Expenses, payable at the beginning of the year, are:
| Year(s) | Percent of Premium | Per Policy |
|---|---|---|
| 1 | 20% | 15 |
| 2 and 3 | 8% | 5 |
(ii) The expense policy value at the end of year 2 is –23.64
(iii) The gross annual premium calculated using the equivalence principle is G = 368.05
(iv) G = 1000P_{x:\overline{3}|} + P^{e}, where P^{e} is the expense loading
Calculate P_{x:\overline{3}|}.
[Question 16 on the Spring 2014 exam]
- A) 0.290
- B) 0.295
- C) 0.300
- D) 0.305
- E) 0.310
Answer this question and see the worked solution