Revision as of 01:08, 20 January 2024 by Admin (Created page with "For a special fully discrete whole life insurance on (40), you are given: (i) The death benefit is 50,000 in the first 20 years and 100,000 thereafter (ii) Level net premiums of 875 are payable for 20 years (iii) Mortality follows the Standard Ultimate Life Table (iv) <math>\quad i=0.05</math> Calculate <math>{ }_{10} V</math>, the net premium policy value at the end of year 10 for this insurance. <ul class="mw-excansopts"><li> 11,090</li><li> 11,120</li><li> 11,15...")
ABy Admin
Jan 20'24
Exercise
For a special fully discrete whole life insurance on (40), you are given:
(i) The death benefit is 50,000 in the first 20 years and 100,000 thereafter
(ii) Level net premiums of 875 are payable for 20 years
(iii) Mortality follows the Standard Ultimate Life Table
(iv) [math]\quad i=0.05[/math]
Calculate [math]{ }_{10} V[/math], the net premium policy value at the end of year 10 for this insurance.
- 11,090
- 11,120
- 11,150
- 11,180
- 11,210
Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
ABy Admin
Jan 20'24
Answer: C
[[math]]
\begin{aligned}
{ }_{10} V & =50,000\left(A_{50}+{ }_{10} E_{50} A_{60}\right)-(875)\left[\ddot{a}_{50: 10}\right] \\
& =50,000[0.18931+(0.60182)(0.29028)]-875[8.0550] \\
& =11,152
\end{aligned}
[[/math]]
Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.