SOA Exam FM Sample Question 237
Study guide: Exam FM-2
An annuity writer sells an annual perpetuity-immediate for 16,000. The first payment is 1,000 and the payments decrease by r% each year.
The annual effective yield rate is 5.7%.
Calculate r.
- A) 0.52
- B) 0.55
- C) 0.62
- D) 0.73
- E) 0.91
Answer this question and see the worked solution