Revision as of 11:43, 18 November 2023 by Admin (Created page with "At an annual effective interest rate of 6%, the present value of a perpetuity immediate with successive annual payments of 6, 8, 10, 12, ..., is equal to X. Calculate X. <ul class="mw-excansopts"><li>100</li><li>656</li><li>695</li><li>1767</li><li>2222</li></ul> {{soacopyright | 2023 }}")
ABy Admin
Nov 18'23
Exercise
At an annual effective interest rate of 6%, the present value of a perpetuity immediate with successive annual payments of 6, 8, 10, 12, ..., is equal to X.
Calculate X.
- 100
- 656
- 695
- 1767
- 2222
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
ABy Admin
Nov 18'23
Solution: B
The present value is
[[math]]
4a_{\overline{4}|0.06} + 2(Ia)_{\overline{\infty}|0.06}=4\,/\,0.06+2(1.06)\,/\,0.06^{2}=655.56.
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.