Actuarial Notes

SOA Exam FM Sample Question 278

Study guide: Exam FM-2

Two immediate annuities have the following characteristics:

  • X: Pays 1/m, m times per year, for 10 years
  • Y: Pays P at the end of years 2, 4, 6, 8, and 10

You are given: i) The accumulated value at time 1 of 1/m paid at times 1/m, 2/m, …, 1 is 1.0331. ii) s_{\overline{2}|} = 2.075. iii) The present value of X equals the present value of Y.

Calculate P.

  • A) 1.94
  • B) 2.01
  • C) 2.03
  • D) 2.07
  • E) 2.14

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