V1per41
10-31-2011, 09:07 PM
A 3-year endowment policy on (5) pays a death benefit of 1000 plus the benefit reserve at the end of the year of death. The endowment benefit is 1000.
You are given:
(i) Mortality follows the Illustrative Life Table.
(ii) i = 0.06.
Determine _{2}V
Since there is no mention of a yearly premium in the question I assumed that there wasn't one, and just a single pay premium.
Books solution involves using an annual premium. Of course by the time I realize this I've already spent a large amount of time figuring it out my way.
I'm hoping the actual exam will be more specific about such things... Would anyone else have made the same mistake/assumption or just me?
You are given:
(i) Mortality follows the Illustrative Life Table.
(ii) i = 0.06.
Determine _{2}V
Since there is no mention of a yearly premium in the question I assumed that there wasn't one, and just a single pay premium.
Books solution involves using an annual premium. Of course by the time I realize this I've already spent a large amount of time figuring it out my way.
I'm hoping the actual exam will be more specific about such things... Would anyone else have made the same mistake/assumption or just me?