SOA Exam FM Sample Question 172
Study guide: Exam FM-2
Fund X receives a deposit of 1000 at time 0. Fund X accumulates at a nominal rate of interest k, compounded semiannually.
Fund Y receives a deposit of 921.90 at time 0. Fund Y accumulates at a nominal rate of discount, also equal to k, compounded semiannually.
At the end of 5 years, the accumulated amount in Fund X and the accumulated amount in Fund Y are both equal to P.
Calculate P.
- A) 1820
- B) 1970
- C) 2100
- D) 2240
- E) 2370
Answer this question and see the worked solution
Concepts tested
- Nominal Discount Rate
- Nominal Discount Rate Convertible m-thly
- Accumulated Value
- Compound Interest
- Discount Rate
- Effective Discount Rate
- Convertible m-thly
- Discount Factor