SOA Exam FM Sample Question 179
Study guide: Exam FM-2
An investment of 10,000 produces a series of 30 annual payments. The first payment of X is made one year after the investment is made. Each successive payment decreases by 5 from the previous payment.
At an annual effective interest rate of 5%, calculate X.
- A) 685
- B) 695
- C) 705
- D) 715
- E) 725
Answer this question and see the worked solution
Concepts tested
- Increasing Annuity
- Arithmetic Increasing Annuity
- Decreasing Annuity
- Present Value
- Non-level Annuities