SOA Exam FM Sample Question 291
Study guide: Exam FM-2
An investor deposits 150 today and receives 100 one year from now and 80 two years from now.
Calculate the annual nominal rate of interest convertible quarterly that the investor earns.
- A) 12.8%
- B) 13.0%
- C) 13.2%
- D) 13.4%
- E) 13.6%
Answer this question and see the worked solution
Concepts tested
- Nominal Interest Rate
- Present Value
- Compound Interest
- Convertible m-thly
- Nominal Interest Rate Convertible m-thly
- Effective Rate