Revision as of 20:16, 18 November 2023 by Admin (Created page with "At an annual effective interest rate of 5%, a 10-year annuity-immediate starting with an annual payment of 100 increases each year by 15% of the previous year's payment and has a present value of X. Calculate X. <ul class="mw-excansopts"><li>597</li><li>772</li><li>1040</li><li>1247</li><li>1484</li></ul> {{soacopyright | 2023 }}")
Nov 18'23
Exercise
At an annual effective interest rate of 5%, a 10-year annuity-immediate starting with an annual payment of 100 increases each year by 15% of the previous year's payment and has a present value of X.
Calculate X.
- 597
- 772
- 1040
- 1247
- 1484
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
Nov 18'23
Solution: E
[[math]]P V=100\left[\frac{1-\left(\frac{1.15}{1.05}\right)^{10}}{0.05-0.15}\right]=1483.62[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.