SOA Exam FM Sample Question 117

Study guide: Exam FM-2

At an annual effective interest rate of 10.9%, each of the following are equal to X:

• The accumulated value at the end of n years of an n-year annuity-immediate paying 21.80 per year.
• The present value of a perpetuity-immediate paying 19,208 at the end of each n-year period.

Calculate X.

• A) 1555
• B) 1750
• C) 1960
• D) 2174
• E) There is not enough information given to calculate X.

Answer this question and see the worked solution

Concepts tested

• Annuities
• Level Annuity
• Accumulated Value
• Perpetuity
• Annuity Immediate
• Level Payment Annuity
• Term of Annuity

More questions from this set

• SOA Exam FM Sample Question 116
• SOA Exam FM Sample Question 118