SOA Exam FM Sample Question 105
Study guide: Exam FM-2
An insurance company has a known liability of 1,000,000 that is due 8 years from now. The technique of full immunization is to be employed. Asset I will provide a cash flow of 300,000 exactly 6 years from now. Asset II will provide a cash flow of X, exactly y years from now, where y > 8.
The annual effective interest rate is 4%.
Calculate X.
- A) 697,100
- B) 698,600
- C) 700,000
- D) 701,500
- E) 702,900
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