Exercise
ABy Admin
Nov 19'23
Answer
Solution: C
[[math]]
450 = X a_{\overline{10}|0.10} + 1000v^{10} \\
[[/math]]
Using BA II Plus calculator:
[[math]]
\begin{aligned}
X = 10.50 \\
1.10 = (1+j)^2, \, j = 0.048881 \\
P = 5.25 a_{\overline{20}|0.048881} + 1000v^{20} \\
P = 451.64
\end{aligned}
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.