SOA Exam FM Sample Question 166
Study guide: Exam FM-2
An investor deposits 100 into a bank account at time 0. The bank credits interest at an annual nominal interest rate of i, compounded semi-annually.
The total amount of interest credited in the twelfth year is twice the amount of interest credited in the fifth year.
Calculate i.
- A) 10.15%
- B) 10.24%
- C) 10.32%
- D) 10.41%
- E) 10.48%
Answer this question and see the worked solution
Concepts tested
- Nominal Interest Rate
- Accumulated Value
- Compound Interest
- Convertible m-thly
- Nominal Interest Rate Convertible m-thly
- Effective Rate