SOA Exam FM Sample Question 366
Study guide: Exam FM-2
The following deposits are made into a fund at the beginning of each year:
| Year | Deposit |
|---|---|
| 1 | 100 |
| 2 | 100 |
| 3 | 150 |
| 4 | 150 |
| 5 | 150 |
The fund earns an annual effective interest rate of 13%.
At the end of the tenth year, the fund is used to purchase a perpetuity-immediate with semiannual payments of X. The perpetuity earns an annual effective interest rate of 12%.
Calculate X.
- A) 99
- B) 102
- C) 105
- D) 180
- E) 204
Answer this question and see the worked solution