SOA Exam FM Sample Question 66
Study guide: Exam FM-2
The present value of a perpetuity paying 1 every two years with first payment due immediately is 7.21 at an annual effective rate of i.
Another perpetuity paying R every three years with the first payment due at the beginning of year two has the same present value at an annual effective rate of i + 0.01.
Calculate R.
- A) 1.23
- B) 1.56
- C) 1.60
- D) 1.74
- E) 1.94
Answer this question and see the worked solution