SOA Exam FAM Sample Question 7.39

Study guide: Exam FAM

An insurer issues a 20-year deferred whole life annuity due on [45]. You are given:

i) Net premiums of 20,000 are payable at the beginning of each year during the deferral period

ii) There is no benefit paid upon death during the deferral period

iii) $_{t}V$ denotes the net premium policy value at time t, $t \ge 0$

iv) $_{19}V = 575{,}000$

v) $q_{[45]+18} = 0.023044$

vi) $i = 0.05$

Calculate $_{18}V$ .

[Question on October 2022 FAM-L Exam]

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