• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

April 2017 CT5 Ques 3

E

Eleanor Cawston

Active Member
In the ASET solution to this question, it states that "the only way of calculating this (endowment assurance) is by adding together the EPV of the term assurance and the EPV of the pure endowment".

I used a premium conversion formula and calculated the required temporary annuity using table values. This gives 0.69811 vs the 0.69809 in the solutions. Is this an acceptable approach, despite the difference in the fourth DP, or does one really *have* to use the solution in the ASET? Why doesn't it work here if so?
Thanks.
 
Premium conversion is absolutely fine for this question. I think what we're getting at in ASET is that you can't simply look this value up in the Tables, so you'll have to find another way of calculating it.
 
You must log in or register to reply here.
Back
Top