Revision as of 11:47, 18 November 2023 by Admin (Created page with "'''Solution: D''' The equation of value is <math display = "block"> 10.000=X( v+ v^{2}0.996+ v^{3}0.996^{2}+\cdots)=X{\frac{e^{-0.06}}{1- v0.996}}=X{\frac{ v}{1-e^{-0.06}0.996}}=15.189X. </math> The solution is X = 10,000/15.189 = 658.37. {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 18'23
Answer
Solution: D
The equation of value is
[[math]]
10.000=X( v+ v^{2}0.996+ v^{3}0.996^{2}+\cdots)=X{\frac{e^{-0.06}}{1- v0.996}}=X{\frac{ v}{1-e^{-0.06}0.996}}=15.189X.
[[/math]]
The solution is X = 10,000/15.189 = 658.37.
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.