SOA Exam FM Sample Question 334
Study guide: Exam FM-2
Today's deposit of 9550 earns an annual effective interest rate of i for five years. At the end of the fifth year, the entire accumulated balance is reinvested into a 20-year annuity-due. The annuity-due has level annual payments of 756.97 at an annual effective interest rate of 4%.
Calculate i.
- A) 1.5%
- B) 2.3%
- C) 7.7%
- D) 12.0%
- E) 19.7%
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