Actuarial Notes

SOA Exam FM Sample Question 247

Study guide: Exam FM-2

The amount that must be invested at i\% (0\% < i\% < 10\%) to accumulate to Y at the end of three years at an annual rate of:

i) simple interest of i\% is Q ii) compound interest of i\% is R iii) simple discount of i\% is S iv) compound discount of i\% is T

Determine which of the following is true.

  • A) Q < R < S < T
  • B) R < Q < S < T
  • C) S < T < R < Q
  • D) T < S < Q < R
  • E) T < S < R < Q

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