SOA Exam FM Sample Question 341
Study guide: Exam FM-2
An annuity writer sells an annual perpetuity-due, with a first payment of 3000. The payments increase by 7% annually.
The purchase price, P, of the perpetuity is based on a 12% annual force of interest.
Calculate P.
- A) 41,096
- B) 52,177
- C) 58,829
- D) 60,000
- E) 67,200
Answer this question and see the worked solution