Fall 97 exam question

Thomas E. Meyer ( Thomas_E._Meyer@sedgus.com )
Fri, 23 Oct 1998 09:29:42 -0500

I know everyone busy cramming but if anyone has a second it would be
much appreciated. Cannot figure out #15 from Fall 1997 exam. It
reads:

Your are given that: a(due)(30) = 20, 3V30 = 0.1 and 1V32 = 0.05

Determine 1 - a(due)(33)(angle 1) / a(immediate)(32)

(where a(due)(30) is PV of a life annunity due for 30 year old, 3V30
is the reserve of a fully discrete whole life insurance issued at age
30 at t=3, a(due)(33)(angle 1) is 1-year tempary life annunity due for
age 33.)

a) less than .9400
b) at least .9400, but less than 0.9425
c) at least .9425, but less than .9450
d) at least .9450, but less than .9475
e) .9475 or more


I can solve for a(immediate)(32) but for the life of me figure out
what to do with the a(due)(33)(angle 1). even just a quick hint could
help and i know most of us don't have time to do much else.

Thanks