SOA Exam FM Sample Question 397
Study guide: Exam FM-2
An annuity-immediate has quarterly payments of 100, 200, 300, and 400 each year for ten years. At a nominal annual rate of 12% convertible quarterly, the present value of the annuity is P.
Determine the equation of value.
- A)
P = 100(Ia)_{\overline{4}|3\%}\,\ddot{a}_{\overline{10}|12\%} - B)
P = 100(Ia)_{\overline{4}|3\%}\,a_{\overline{10}|12\%} - C)
P = 100(I\ddot{a})_{\overline{4}|3\%}\,a_{\overline{10}|12.55\%} - D)
P = 100(I\ddot{a})_{\overline{4}|3\%}\,\ddot{a}_{\overline{10}|12\%} - E)
P = 100(Ia)_{\overline{4}|3\%}\,\ddot{a}_{\overline{10}|12.55\%}
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