SOA Exam FM Sample Question 57
Study guide: Exam FM-2
Jia Wen has a liability of 12,000 due in eight years. This liability will be met with payments of 5000 in five years and B in 8 + b years. Jia Wen is employing a full immunization strategy using an annual effective interest rate of 3%.
Calculate \dfrac{B}{b}.
- A) 2807
- B) 2873
- C) 2902
- D) 2976
- E) 3019
Answer this question and see the worked solution