SOA Exam FM Sample Question 86
Study guide: Exam FM-2
A bank agrees to lend 10,000 now and X three years from now in exchange for a single repayment of 75,000 at the end of 10 years. The bank charges interest at an annual effective rate of 6% for the first 5 years and at a force of interest \delta_t = \dfrac{1}{t+1} for t \ge 5.
Calculate X.
- A) 23,500
- B) 24,000
- C) 24,500
- D) 25,000
- E) 25,500
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