Study for the SOA Fundamentals of Actuarial Mathematics (FAM) Exam. Prepare with flashcards and multiple choice questions with detailed explanations. Get ready for your future as an actuary!

Multiple Choice

In UD D, the m-ly n-year term annuity formula is: m-ly n year term annuity = alpha(m) * annual version - beta(m)*( 1 - nEx). Which option matches this expression?

This question tests recognizing the exact algebraic form of the m-ly n-year term annuity in UD D. The expression is built from two parts: alpha(m) multiplied by the annual version, and then subtracting beta(m) multiplied by the quantity (1 - nEx). The correct form is precisely alpha(m) * annual version - beta(m) * (1 - nEx). The other variants would either change the sign of the second term, replace (1 - nEx) with nEx, or drop the subtraction, which would not match the defined formula.

This question tests recognizing the exact algebraic form of the m-ly n-year term annuity in UD D. The expression is built from two parts: alpha(m) multiplied by the annual version, and then subtracting beta(m) multiplied by the quantity (1 - nEx). The correct form is precisely alpha(m) * annual version - beta(m) * (1 - nEx). The other variants would either change the sign of the second term, replace (1 - nEx) with nEx, or drop the subtraction, which would not match the defined formula.