SOA Exam FM Sample Question 313
Study guide: Exam FM-2
A perpetuity-due with annual payments is priced at X based on an annual effective interest rate of 7%. The amount of the first payment is 350. Each payment, from the second through the thirtieth, is 3% larger than the previous payment. Starting with the 31st payment, each payment is equal to the 30th payment.
Calculate X.
- A) 7508
- B) 7855
- C) 7925
- D) 7971
- E) 8033
Answer this question and see the worked solution