SOA Exam FM Sample Question 244
Study guide: Exam FM-2
Greg buys a 20-year increasing annuity-immediate with annual payments. The first payment is 110 and each succeeding payment is equal to the previous payment plus X. The annuity is priced at 2000 based on an annual effective interest rate of 10%.
Calculate X.
- A) 16.64
- B) 17.45
- C) 19.19
- D) 21.00
- E) 22.68
Answer this question and see the worked solution