Revision as of 03:12, 20 January 2024 by Admin (Created page with "'''Answer: C''' <math>A_{80: 10 \mid}^{1}=A_{80: \overline{10}}-{ }_{10} E_{80}=0.67674-0.33952=0.33722</math> <math>\bar{A}_{80: 10 \mathrm{l}}^{1}=\frac{0.05}{\ln (1.05)} 0.33722=0.34559</math> EPV future benefits <math>=1000(0.34559)+500(0.33952)=515.35</math> EPV future net premiums <math>=\ddot{a}_{80: 10} P=6.7885(35.26)=239.36</math> Policy value <math>=515.36-239.36=276</math> {{soacopyright|2024}}")
Exercise
ABy Admin
Jan 20'24
Answer
Answer: C
[math]A_{80: 10 \mid}^{1}=A_{80: \overline{10}}-{ }_{10} E_{80}=0.67674-0.33952=0.33722[/math]
[math]\bar{A}_{80: 10 \mathrm{l}}^{1}=\frac{0.05}{\ln (1.05)} 0.33722=0.34559[/math]
EPV future benefits [math]=1000(0.34559)+500(0.33952)=515.35[/math]
EPV future net premiums [math]=\ddot{a}_{80: 10} P=6.7885(35.26)=239.36[/math]
Policy value [math]=515.36-239.36=276[/math]
Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.