Revision as of 11:30, 20 November 2023 by Admin
Exercise
Nov 20'23
Answer
Solution: D
Equate net present values:
[[math]]
\begin{array}{c}{{-4000+2000 v+4000 v^{2}=2000+4000 v-X v^{2}}}\\ {{\frac{4000+X}{1.1}=6000+\frac{2000}{1.1}}} \\
X= 5460.
\end{array}
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.