SOA Exam FM Sample Question 202
Study guide: Exam FM-2
An insurance company sells an annuity that provides 20 annual payments, with the first payment beginning one year from today and each subsequent payment 2% greater than the previous payment.
Using an annual effective interest rate of 3%, the present value of the annuity is 200,000.
Calculate the amount of the final payment from this annuity.
- A) 11,282
- B) 16,436
- C) 16,765
- D) 19,784
- E) 24,162
Answer this question and see the worked solution