SOA Exam FM Sample Question 327
Study guide: Exam FM-2
An n-year annuity, with a payment of 1 at the end of each year, has a present value of 5.5554 at an annual nominal interest rate, convertible m times per year.
Also:
i) j is the effective rate of interest per interest conversion period, and
ii) (1+j)^m = 1.0614.
Calculate n.
- A) 7
- B) 8
- C) 9
- D) 10
- E) There is insufficient information to calculate
n.
Answer this question and see the worked solution