Revision as of 08:57, 18 November 2023 by Admin (Created page with "'''Solution: D.''' The present value is <math display = "block"> \begin{array}{l}{{5000[1.07 v+1.07^{2} v^{2}+\cdots+1.07^{20} v^{20}]}}\\ {{=5000\frac{1.07 v-1.07^{21} v^{21}}{1-1.07 v}=5000\frac{1.01905-1.48622}{1-1.01905}=122,617.}}\end{array} </math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 18'23
Answer
Solution: D.
The present value is
[[math]]
\begin{array}{l}{{5000[1.07 v+1.07^{2} v^{2}+\cdots+1.07^{20} v^{20}]}}\\ {{=5000\frac{1.07 v-1.07^{21} v^{21}}{1-1.07 v}=5000\frac{1.01905-1.48622}{1-1.01905}=122,617.}}\end{array}
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.