SOA Exam FM Sample Question 24
Study guide: Exam FM-2
At an annual effective interest rate of i, i > 0\%, the present value of a perpetuity paying 10 at the end of each 3-year period, with the first payment at the end of year 3, is 32.
At the same annual effective rate of i, the present value of a perpetuity paying 1 at the end of each 4-month period, with first payment at the end of 4 months, is X.
Calculate X.
- A) 31.6
- B) 32.6
- C) 33.6
- D) 34.6
- E) 35.6
Answer this question and see the worked solution