SOA Exam FM Sample Question 80
Study guide: Exam FM-2
Jack inherited a perpetuity-due, with annual payments of 15,000. He immediately exchanged the perpetuity for a 25-year annuity-due having the same present value. The annuity-due has annual payments of X.
All the present values are based on an annual effective interest rate of 10% for the first 10 years and 8% thereafter.
Calculate X.
- A) 16,942
- B) 17,384
- C) 17,434
- D) 17,520
- E) 18,989
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