May 2012 solutions

[Steve White]

I was the primary editor for the SOA's solutions. If you find errors, please let me know and I'll get them fixed for the benefit of future candidates. As for any SOA exam, if you find mistakes in the study material, you could also notify education@soa.org. If you believe the answer key is wrong or that a question is defective, you should e-mail education@soa.org, indicating why you think the question is defective.

We got approval to release the exam in late April. I don't recall the exact date. The answer key was final and signed off by several people, including me, months ago. Solutions existed then, but those were not organized well enough to be published as model solutions. Notation in the solutions did not always match the notation of the current syllabus. I cannot respond to questions about the exam, the distribution of questions, the length or difficulty, or how any of those might be different in the November 2012 exam.

[StudyingIsFun]

Hi,

On question 20 I noticed the final line to say, "Total APV of both benefits = 10,275 + 10,474 = 113,749."

I think the intention was 103,275+10,474. Just a typo, but thought I would mention.

[nin01001]

Thanks Steve, I think you answered plenty of questions people have had about the timing of the release of this and everything makes sense.

[DehydratedSnowman]

Another small typo in the solution to question 11: The discount rate used for the COI calculation is 0.0004 instead of 0.004. Line 3 currently reads “COI(12) = 10,000 * 0.001 / 1.0004” and I believe it should read “COI(12) = 10,000 * 0.001 / 1.004”. It looks like 1.004 was used in the actual calculation and this is a typo because using 1.0004 gives 10.00 while 1.004 gives 9.96. Same issue with line 5, COI(13).

[Steve White]

The typos in the solutions to 11 and 20 have been fixed. Thank you for pointing these out.