SOA Exam FM Sample Question 283
Study guide: Exam FM-2
Paul makes one investment of 500 on January 1, 2005 and collects 600 on January 1, 2007 for an annual effective yield of X%.
Toby invests 100 on January 1, 2005, invests another 100 on January 1, 2006, and collects an amount Z on January 1, 2007 for an annual effective yield of Y%.
The combination of Paul's and Toby's cash flows, produces an annual effective yield of 10%.
Calculate Y\% - X\%.
- A) 0%
- B) 1%
- C) 2%
- D) 3%
- E) 4%
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