Transcription of Exam FM Sample Questions - SOA
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SOCIETY OF ACTUARIES. EXAM FM FINANCIAL MATHEMATICS. EXAM FM Sample Questions . This set of Sample Questions includes those published on the interest theory topic for use with previous versions of this examination. In addition, the following have been added to reflect the revised syllabus beginning June 2017: Questions 155-158 on interest rate swaps have been added. Questions 155-157 are from the previous set of financial economics Questions . Question 158 is new. Questions 66, 178, 187-191 relate to the study note on approximating the effect of changes in interest rates. Questions 185-186 and 192-195 relate to the study note on determinants of interest rates. Questions 196-202 on interest rate swaps were added. March 2018 Question 157 has been deleted.
John repays the 10,000 using a sinking fund that pays an annual effective interest rate of 14%. The deposits to the sinking fund are equal to 1,627.45 minus the interest on the loan and are made at the end of each year for 10 years. Calculate the balance in the sinking fund immediately after repayment of the loan. (A) 2,130 (B) 2,180 (C) 2,230
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