Exercise


ABy Admin
Nov 19'23

Answer

Solution: B

[[math]] \begin{aligned} & P_t=I_t \\ & v^{20-t+1}=\left(1-v^{20-t+1}\right) \\ & 2 v^{20-t+1}=1 \\ & v^{21-t}=0.5 \\ & 1.05^{21-t}=2 \\ & (21-t) \ln (1.05)=\ln 2 \\ & t=7\end{aligned} [[/math]]

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

00