SOA Exam FM Sample Question 321
Study guide: Exam FM-2
John deposits 1000 into a fund. The fund earns:
i) an annual nominal rate of interest of 4% convertible quarterly for the first three years; ii) a constant annual force of interest of 5% for the next three years; and iii) an annual nominal discount rate of 6% convertible semiannually thereafter.
Calculate the amount in the fund at the end of ten years.
- A) 1658
- B) 1667
- C) 1670
- D) 1674
- E) 1677
Answer this question and see the worked solution
Concepts tested
- Nominal Interest Rate
- Force of Interest
- Accumulated Value
- Convertible m-thly
- Nominal Interest Rate Convertible m-thly
- Effective Rate