SOA Exam FM Sample Question 9
Study guide: Exam FM-2
Jeff deposits 10 into a fund today and 20 fifteen years later. Interest for the first 10 years is credited at a nominal discount rate of d compounded quarterly, and thereafter at a nominal interest rate of 6% compounded semiannually. The accumulated balance in the fund at the end of 30 years is 100.
Calculate d.
- A) 4.33%
- B) 4.43%
- C) 4.53%
- D) 4.63%
- E) 4.73%
Answer this question and see the worked solution
Concepts tested
- Nominal Discount Rate
- Nominal Discount Rate Convertible m-thly
- Discount Rate
- Effective Discount Rate
- Convertible m-thly
- Discount Factor