SOA Exam FM Sample Question 19
Study guide: Exam FM-2
Project P requires an investment of 4000 today. The investment pays 2000 one year from today and 4000 two years from today.
Project Q requires an investment of X two years from today. The investment pays 2000 today and 4000 one year from today.
The net present values of the two projects are equal at an annual effective interest rate of 10%.
Calculate X.
- A) 5400
- B) 5420
- C) 5440
- D) 5460
- E) 5480
Answer this question and see the worked solution