SOA Exam FM Sample Question 238
Study guide: Exam FM-2
A perpetuity makes payments every five years with a first payment of 2 to be paid five years from now. Each subsequent payment is 10 more than the previous payment. The annual effective interest rate is 9%.
Calculate the present value of the perpetuity.
- A) 34.47
- B) 35.80
- C) 36.33
- D) 37.12
- E) 38.18
Answer this question and see the worked solution