SOA Exam FM Sample Question 165

Study guide: Exam FM-2

An annuity provides the following payments:

• i) X at the beginning of each year for 20 years, starting today
• ii) 4X at the beginning of each year for 30 years, starting 20 years from today

Calculate the Macaulay duration of this annuity using an annual effective interest rate of 2%.

• A) 27.32
• B) 27.87
• C) 28.30
• D) 33.53
• E) 35.41

Answer this question and see the worked solution

Concepts tested

• Duration
• Macaulay Duration
• Annuity Due

More questions from this set

• SOA Exam FM Sample Question 164
• SOA Exam FM Sample Question 166