For a fully discrete whole life insurance policy of 100,000 on [55], a professional skydiver, you are given:

(i) Level premiums are paid annually

(ii) Mortality follows a 2-year select and ultimate table

(iii) [math]\quad i=0.04[/math]

(iv) The following table of values for [math]A_{[x]+t}[/math] :

[math]x[/math]	[math]A_{[x]}[/math]	[math]A_{[x]+1}[/math]	[math]A_{x+2}[/math]
55	0.23	0.24	0.25
56	0.25	0.26	0.27
57	0.27	0.28	0.29
58	0.29	0.30	0.31

Calculate the Full Preliminary Term reserve at time 3.

• 2700
• 3950
• 5200
• 6450
• 7800

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

Answer: B

[[math]] \begin{aligned} & { }_{3} V^{F P T}=100,000 A_{[55]+3}-100,000 P_{[55]+1} \ddot{a}_{[55]+3} \\ & =100,000 A_{58}-100,000 \frac{A_{[55]+1}}{\ddot{a}_{[55]+1}} \ddot{a}_{58} \\ & =100,000\left(0.27-\frac{0.24}{\frac{1-0.24}{d}} \cdot \frac{1-0.27}{d}\right) \\ &= 3947.37 \end{aligned} [[/math]]

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