Verified solution · Exam FM
This Exam FM sample reference tests Equation of Value under a Constant Force. Using time 20 as the comparison date, the deposits occur at times n/2 for n from 1 through 40. Discounting both sides back twenty years yields the expression in choice E.
Independent solution
Setup
Index the forty deposits by n, with deposit n occurring at time n divided by two.
Model
Write the balance at time 20 by accumulating each deposit under force 4.5%.
Compute
Multiply the equation by the twenty-year discount factor.
Answer
This index range and sign pattern are exactly those of choice E.
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Original practice · fully worked
A savings plan receives 300 at each quarter-end for eight years. The account earns a constant annual force of 3%. Find the balance immediately after the final deposit.
Accumulating each of the thirty-two quarterly deposits to time 8 under the 3% force gives 10809.33, choice D.
Setup
Deposit k occurs at time k divided by four, for k from 1 through 32.
Model
Accumulate every payment to the final date.
Compute
The finite exponential sum evaluates directly.
Answer
The terminal balance is 10809.33, choice D.
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ActuaryProof. “SOA Exam FM Sample Question #342 — Verified Solution.” Verified 2026-07-31.
Source reference: official SOA sample-question PDF. Last reviewed 2026-07-31.
