Question
Modified portfolio method ignoring mortality and expense charges, assume the rollover percentage is 45 percent and the annual premium is $1000. Year 1's new-money rate
Modified portfolio method ignoring mortality and expense charges, assume the rollover percentage is 45 percent and the annual premium is $1000. Year 1's new-money rate is 8 percent. Year 2's new-money rate is 11 percent. What is the end of second-year value?
A. $2023.98
B. $2290.98
C. $1149.23
D. $1652.19
E. $1641.52
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 10th Edition
1337902578, 978-1337902571
