SOA Exam FM Sample Question 349
Study guide: Exam FM-2
The annual force of interest is \delta_t = \dfrac{2}{10-t}, for 0 \le t < 10, in which t is measured in years.
Calculate the equivalent annual nominal discount rate compounded every two years for the period 2.0 \le t \le 2.4.
- A) 20%
- B) 23%
- C) 27%
- D) 29%
- E) 34%
Answer this question and see the worked solution
Concepts tested
- Nominal Discount Rate
- Nominal Discount Rate Convertible m-thly
- Force of Interest
- Discount Rate
- Effective Discount Rate
- Convertible m-thly
- Discount Factor