SOA Exam FM Sample Question 182
Study guide: Exam FM-2
Four annual tuition payments of 25,000 are to be paid at a future date.
The payments will be funded by investing 1000 at the beginning of each month. The last deposit will be made six months before the first tuition payment. Interest is payable at a nominal interest rate of 6% convertible monthly.
Calculate the minimum number of monthly deposits required to fund the total tuition.
- A) 70
- B) 71
- C) 73
- D) 74
- E) There is not enough information to calculate the minimum number of monthly deposits.
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