SOA Exam FM Sample Question 62
Study guide: Exam FM-2
Lucas opens a bank account with 1000 and lets it accumulate at an annual nominal interest rate of 6% convertible semiannually. Danielle also opens a bank account with 1000 at the same time as Lucas, but it grows at an annual nominal interest rate of 3% convertible monthly.
For each account, interest is credited only at the end of each interest conversion period.
Calculate the number of months required for the amount in Lucas's account to be at least double the amount in Danielle's account.
- A) 276
- B) 282
- C) 285
- D) 286
- E) 288
Answer this question and see the worked solution