SOA Exam FM Sample Question 214
Study guide: Exam FM-2
Matthew deposits 100 into Fund X, which earns a nominal annual rate of discount of 12% convertible quarterly.
At the same time, Sarah deposits 200 into Fund Y, which earns a constant annual force of interest of 0.08.
After n years, the balance of Fund X equals the balance of Fund Y.
Calculate n.
- A) 14.5
- B) 16.6
- C) 17.6
- D) 18.1
- E) 18.6
Answer this question and see the worked solution
Concepts tested
- Nominal Discount Rate
- Nominal Discount Rate Convertible m-thly
- Force of Interest
- Accumulated Value
- Discount Rate
- Effective Discount Rate
- Convertible m-thly
- Discount Factor