Exercise


ABy Admin
Nov 19'23

Answer

Solution: A

[[math]] \begin{aligned} & 1.0912=(1+j)^{12} \\ & j=0.0073 \\ & 100,000=P a_{\overline{180} | 0.0073} \\ & P=1000.02 \\ & O B_{59}=1000.02 a_{\overline{1210} | 0.0073} \\ & O B_{59}=80,174.59 \\ & 1.0576=(1+j)^{12} \\ & j=0.004678 \end{aligned} [[/math]]


Interest portion of first revised payment:

[[math]] 80,174.59(0.004678)=375.04 \text {. } [[/math]]

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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