2026 SOA Fundamentals of Actuarial Mathematics Complete Practice Test

This question tests simplifying a fraction inside a power and then evaluating the resulting power.

Compute inside: x = 1 and blah = 2 give x + blah = 3, so x/(x+blah) = 1/3. Then 1 minus that is 1 - 1/3 = 2/3. Raise to the 20th power: (2/3)^20 = 2^20 / 3^20.

Numerically, 2^20 = 1,048,576 and 3^20 = 3,486,784,401, so the value is 1,048,576 / 3,486,784,401 ≈ 0.0003007. Therefore the result is about 0.0003007, which matches the given option.