For a special fully discrete whole life insurance policy of 1000 on (90), you are given:

(i) The first year premium is 0

(ii) [math]\quad P[/math] is the renewal premium

(iii) Mortality follows the Standard Ultimate Life Table

(iv) [math]\quad i=0.05[/math]

(v) Premiums are calculated using the equivalence principle

Calculate [math]P[/math].

• 150
• 160
• 170
• 180
• 190

Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

Answer: D

EPV [math]([/math] Premiums [math])=P a_{90}=P\left(\ddot{a}_{90}-1\right)=(4.1835) P[/math]

[math]\operatorname{EPV}([/math] Benefits [math])=1000 A_{90}=1000(0.75317)=753.17[/math]

Therefore,

[[math]] P=\frac{753.17}{4.1835}=180.03 [[/math]]

Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.