SOA Exam FM Sample Question 446
Study guide: Exam FM-2
A special arithmetically increasing annuity-due will make 84 monthly payments. It provides payments of 100 today, 100 one month from now, 105 two months from now, 105 three months from now, and so on until the 83rd and 84th payments of 305 each are made.
The present value of this annuity based on an annual nominal rate interest rate of 4.8% compounded monthly is P.
Calculate P.
- A) 13,950
- B) 13,978
- C) 14,008
- D) 14,062
- E) 14,117
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