Actuarial Notes

SOA Exam FM Sample Question 442

Study guide: Exam FM-2

An asset earns an annual force of interest given by \delta(t) = \dfrac{1}{20+t}, where t is the time in years since January 1, 2020. The equivalent annual effective rate of interest for the year 2024 is i.

Calculate i.

  • A) 4.00%
  • B) 4.08%
  • C) 4.17%
  • D) 4.35%
  • E) 5.00%

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