SOA Exam FM Sample Question 360
Study guide: Exam FM-2
A perpetuity-immediate has monthly payments that increase by 5% every 12 payments. The initial 12 payments are 500 each.
The present value of this perpetuity-immediate, using an annual effective interest rate of 8% is X.
Calculate X.
- A) 191,881
- B) 197,637
- C) 200,009
- D) 207,231
- E) 209,546
Answer this question and see the worked solution