SOA Exam FM Sample Question 164
Study guide: Exam FM-2
An annuity provides level payments of 1000 every six months for a fixed period.
Using an annual effective interest rate of i, the future value of this annuity at the time of the last payment is 19,549.25 and the present value of this annuity at the time of the first payment is 7,968.89.
Calculate i.
- A) 7.4%
- B) 8.5%
- C) 15.4%
- D) 17.0%
- E) 17.7%
Answer this question and see the worked solution
Concepts tested
- Annuities
- Level Annuity
- Accumulated Value
- Present Value
- Annuity Immediate
- Level Payment Annuity
- Term of Annuity