SOA Exam FM Sample Question 428
Study guide: Exam FM-2
You are given the following information regarding two perpetuities:
- i) Perpetuity X provides payments of 3000 every six months with the first payment due immediately.
- ii) Perpetuity Y provides payments of
kevery two years with the first payment due one year from now. - iii) Based on an annual effective interest rate of 4.94%, Perpetuity X and Perpetuity Y have the same present value.
Calculate k.
- A) 12,150
- B) 12,450
- C) 12,750
- D) 13,050
- E) 13,380
Answer this question and see the worked solution