SOA Exam FM Sample Question 414
Study guide: Exam FM-2
At the beginning of the year, an entrepreneur deposited money into a savings account. At the end of the year, the entrepreneur had earned a total of 400 in interest and had an account balance of 8000.
Determine which annual quantity exactly equals 5%.
- A) Nominal discount rate
- B) Discount factor
- C) Effective discount rate
- D) Effective interest rate
- E) Force of interest
Answer this question and see the worked solution