SOA Exam FM Sample Question 386
Study guide: Exam FM-2
An annuity has the first monthly payment of 750 occurring in five years. Each payment thereafter is 1.0% greater than the preceding payment. The final payment occurs exactly 15 years after the first payment.
The annuity has a present value of P based on an annual nominal interest rate of 7.2% compounded monthly.
Calculate P.
- A) 136,551
- B) 137,370
- C) 138,440
- D) 189,523
- E) 198,217
Answer this question and see the worked solution