SOA Exam FM Sample Question 367
Study guide: Exam FM-2
An investor deposits 225 into a bank at the beginning of each month for 20 years. The bank pays interest at an annual effective rate of 8%.
At the end of 20 years, the investor uses the money in the bank to buy a 30-year annuity-due with annual payments of X. These annual payments are based on an annual effective interest rate of 7%.
Calculate X.
- A) 9,642
- B) 9,704
- C) 9,981
- D) 10,317
- E) 10,383
Answer this question and see the worked solution