SOA Exam FM Sample Question 358
Study guide: Exam FM-2
A retailer offers two payment plans:
- i) A 2% discount if paid within 10 calendar days after purchase
- ii) Pay the full amount on the 30th day after purchase
Assume a 365-day year.
The implied annual effective yield the buyer is charged for delaying payment from day 1 to day 30 is i.
Calculate i.
- A) 24.3%
- B) 26.8%
- C) 27.9%
- D) 36.5%
- E) 44.6%
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