Revision as of 03:04, 20 January 2024 by Admin (Created page with "'''Answer: D''' APV future benefits <math>=1000\left[0.04 v+0.05 \times 0.96 v^{2}+0.96 \times 0.95 \times(0.06+0.94 \times 0.683) v^{3}\right]=630.25</math> APV future premiums <math>=130(1+0.96 v)=248.56</math> <math>E\left[{ }_{3} L\right]=630.25-248.56=381.69</math> {{soacopyright|2024}}")
Exercise
ABy Admin
Jan 20'24
Answer
Answer: D
APV future benefits [math]=1000\left[0.04 v+0.05 \times 0.96 v^{2}+0.96 \times 0.95 \times(0.06+0.94 \times 0.683) v^{3}\right]=630.25[/math]
APV future premiums [math]=130(1+0.96 v)=248.56[/math]
[math]E\left[{ }_{3} L\right]=630.25-248.56=381.69[/math]
Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.