Question 1
A credit card charges a nominal annual interest rate of 18.0% convertible monthly.
Calculate the annual effective interest rate.
Learn Exam FM one topic at a time.
Find your weakest topic in a free 50-minute diagnostic, fix it with a short lesson, then sit full 30-question practice exams.
The only interactive course with a tutor that finds your weak spots and fixes them.
One payment in US dollars. Full refund within 14 days, for any reason.
The five topics of SOA Exam FM
30 multiple-choice questions in 2.5 hours, with five choices each.
Time value
Effective and nominal rates, discount, force of interest and equations of value.
5–15% of the exam
Annuities
Level, deferred, increasing and geometric annuities, and perpetuities.
20–30% of the exam
Loans
Level payments, outstanding balance, interest and principal in a payment, refinancing.
15–25% of the exam
Bonds
Price, premium and discount, book value, yield and callable bonds.
15–25% of the exam
Portfolios and ALM
Spot and forward rates, duration, convexity and immunization.
20–30% of the exam
Start with a free 50-minute diagnostic
10 questions across every topic, no account. You get your score by topic and a short lesson on the one to fix first.
Try one question from each topic
Question 2
Omar will receive 10 annual payments of $10,000, the first one 6 years from now. The annual effective interest rate is 6.0%.
Calculate the present value of the payments.
Question 3
Cy borrows $10,000, repaid by level payments at the end of each year for 5 years at an annual effective interest rate of 8.0%.
Calculate the interest in payment 3.
Question 4
A 10-year bond has a face amount of $1,000 and pays semiannual coupons at an annual coupon rate of 8.0%. It is bought to yield a nominal annual rate of 6.0% convertible semiannually.
Calculate the price of the bond.
Question 5
An asset pays $1,000 at the end of year 1, $2,000 at the end of year 2 and $3,000 at the end of year 3.
Calculate its Macaulay duration at an annual effective interest rate of 5.0%.
In the course
- 11 interactive lessons
- 127 practice questions, every answer worked
- 2 full 30-question practice exams
Free tools
Guides
Sitting Exam P too?
SOA Exam P (Probability) has its own free diagnostic, lessons and practice exams.
Financial Math Genius Pro
US$99one payment
- 11 interactive lessons
- 127 practice questions
- 2 full 30-question practice exams
Full refund within 14 days. Ask within 14 days of paying, for any reason. Our refund promise still applies after you start the course. The note under the pay button is about the separate legal right to cancel. Terms
By paying you agree to our Terms. Email us within 14 days for a full refund.
Take the free diagnostic firstApple Pay, Google Pay or card. Charged in USD.
One payment. No sales tax is added. Access until October 31, 2027.
Questions? support@unigenius.co.uk