SOA Exam FM Sample Question 330
Study guide: Exam FM-2
At time t = 0, 3 is deposited into an investment fund earning interest at a force of interest \delta_t = 1/(t+1).
At the same time, X is deposited into a bank account paying interest at an annual effective interest rate of 5%.
In the third year, the interest earned on the first account and the interest credited on the second account are exactly the same.
Calculate X.
- A) 5.5
- B) 8.2
- C) 13.0
- D) 25.7
- E) 54.4
Answer this question and see the worked solution