Question
A $100,000 whole life policy is issued to a life
aged 25 for a single premium due at issuance.
Assume the force of mortality is a constant
$\mu$ = 0.005 and the force of interest is $\delta$ = 0.10.
The death benefit is paid at the time of death.
What is the actuarial present value of the above
policy?
Possible Answers
A < $3,500
B \ge $3,500 but < $4,000
C \ge $4,000 but < $4,500
D \ge $4,500 but < $5,000
E \ge $5,000