This is fully worked through in Section 7.6 of Chapter 1 (it's for a whole life assurance but the logic is the same for a term assurance.) I know this is a past exam question which asked for a proof (there may be around 5 marks or so for proofs in each exam), but the exam question you quote is the only time (I believe) in the last 12 years that this proof has been asked for. So it is really quite unimportant in the big scheme of things. How far through the course are you, by the way? If you've covered the whole course already and are looking at past papers then that is fine - excellent in fact. But if you've only covered part 1 (for example) so far then I think you would be far better skimming over such things as this question and concentrating much more on getting the course finished as quickly as you can, as I said before. Best wishes Robert
Ok, fine, and yes very good plan to be looking through past questions that are relevant to your study so far. However, Part 1 is relatively theoretical compared to the rest of the course, and there are relatively few past questions that only relate to this part. So I would basically move on to the next part - Chapters 5-7 involve some very important concepts and basically the whole course moves up a gear at this point. I'd strongly recommend getting on with this straight away and perhaps leaving some of your more detailed questions for now, as they are not very important in the big scheme of things. Try not to worry if you haven't understood every last thing about part (i). You're bound to need to refer back to these earlier chapters once you do Part 2 - so bite the bullet and get stuck in.
