Exercise
ABy Admin
Nov 19'23
Answer
Solution: E
Using the BAII Plus calculator:
n = 12
PV = 911.37
PMT = -40
FV = -1000
CPT I/Y and you get 5.0% is the half-year rate:
[[math]]
{\frac{i^{(2)}}{2}}.\ (1+i)=(1+0.05)^{2};i=0.1025
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.