SOA Exam FM Sample Question 1
Study guide: Exam FM-2
Bruce deposits 100 into a bank account. His account is credited interest at an annual nominal rate of interest of 4% convertible semiannually.
At the same time, Peter deposits 100 into a separate account. Peter's account is credited interest at an annual force of interest of \delta.
After 7.25 years, the value of each account is the same.
Calculate \delta.
- A) 0.0388
- B) 0.0392
- C) 0.0396
- D) 0.0404
- E) 0.0414
Answer this question and see the worked solution