SOA Exam FM Sample Question 118
Study guide: Exam FM-2
An investor decides to purchase a five-year annuity with an annual nominal interest rate of 12% convertible monthly for a price of X.
Under the terms of the annuity, the investor is to receive 2 at the end of the first month. The payments increase by 2 each month thereafter.
Calculate X.
- A) 2015
- B) 2386
- C) 2475
- D) 2500
- E) 2524
Answer this question and see the worked solution