SOA Exam FM Sample Question 410
Study guide: Exam FM-2
A student invested a math competition prize into a savings account. The account receives interest quarterly, and the account balance increases by 4.5% each year.
Determine the correct term that the 4.5% figure represents.
- A) annual effective interest rate
- B) force of interest
- C) annual nominal interest rate, convertible quarterly
- D) annual discount rate
- E) annual simple interest rate
Answer this question and see the worked solution