Revision as of 18:50, 19 November 2023 by Admin (Created page with "'''Solution: B''' The book value at time 6 is the present value of future payments <math display = "block"> BV_{6}=10000v^4 + 800 a_{\overline{4}|0.06}=7920.94+2772.08=10,693. </math> The interest portion is 10,693(0.06) = 641.58. {{soacopyright | 2023 }}")
Exercise
Nov 19'23
Answer
Solution: B
The book value at time 6 is the present value of future payments
[[math]]
BV_{6}=10000v^4 + 800 a_{\overline{4}|0.06}=7920.94+2772.08=10,693.
[[/math]]
The interest portion is 10,693(0.06) = 641.58.
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.