SOA Exam FM Sample Question 398
Study guide: Exam FM-2
A perpetuity-immediate has annual payments starting at 1, increasing by 1 each year until it reaches 10, then decreasing by 1 each year until it reaches 5, and remaining at 5 thereafter.
The present value of this perpetuity at an annual effective interest rate of 9% is X.
Calculate X.
- A) 51
- B) 53
- C) 55
- D) 58
- E) 61
Answer this question and see the worked solution