SOA Exam FM Sample Question 78
Study guide: Exam FM-2
Five deposits of 100 are made into a fund at two-year intervals with the first deposit at the beginning of the first year.
The fund earns interest at an annual effective rate of 4% during the first six years and at an annual effective rate of 5% thereafter.
Calculate the annual effective yield rate earned over the investment period ending at the end of the tenth year.
- A) 4.18%
- B) 4.40%
- C) 4.50%
- D) 4.58%
- E) 4.78%
Answer this question and see the worked solution