SOA Exam FM Sample Question 63
Study guide: Exam FM-2
Bill and Joe each put 10 into separate accounts at time t = 0, where t is measured in years. Bill's account earns interest at a constant annual effective interest rate of K/25, K > 0.
Joe's account earns interest at a force of interest \delta_t = \dfrac{1}{K + 0.25t}.
At the end of four years, the amount in each account is X.
Calculate X.
- A) 20.7
- B) 21.7
- C) 22.7
- D) 23.7
- E) 24.7
Answer this question and see the worked solution