CAS Exam MAS-I Spring 2019, Question 12
Study guide: Exam MAS-I
You are given the following information for a whole life annuity-due of 10,000 on (x) that is payable annually:
q_x = 0.010q_{x+1} = 0.012- Interest rate
i = 0.06 \ddot{a}_{x+1} = 10.905
Calculate the absolute change in the actuarial present value of this annuity due if p_{x+1} is decreased by 0.01.
- A) Less than 900
- B) At least 900, but less than 925
- C) At least 925, but less than 950
- D) At least 950, but less than 975
- E) At least 975
Answer this question and see the worked solution