SOA Exam FM Sample Question 242
Study guide: Exam FM-2
Susan won the lottery today which will pay an annual perpetuity of X, with the first payment occurring five years from today.
The perpetuity has a present value of 100,000 based on an annual effective interest rate of 1% for the first ten years and 5% for all years thereafter.
Calculate X.
- A) 4100
- B) 4224
- C) 4357
- D) 4401
- E) 5696
Answer this question and see the worked solution