SOA Exam FM Sample Question 14
Study guide: Exam FM-2
To accumulate 8000 at the end of 3n years, deposits of 98 are made at the end of each of the first n years and 196 at the end of each of the next 2n years.
The annual effective rate of interest is i. You are given (1 + i)^n = 2.0.
Calculate i.
- A) 11.25%
- B) 11.75%
- C) 12.25%
- D) 12.75%
- E) 13.25%
Answer this question and see the worked solution