SOA Exam FM Sample Question 112
Study guide: Exam FM-2
At time 0, Cheryl deposits X into a bank account that credits interest at an annual effective rate of 7%. At time 3, Gomer deposits 1000 into a different bank account that credits simple interest at an annual rate of y%. At time 5, the annual forces of interest on the two accounts are equal, and Gomer's account has accumulated to Z.
Calculate Z.
- A) 1160
- B) 1200
- C) 1390
- D) 1400
- E) 1510
Answer this question and see the worked solution