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Launching soon · SOA Exam P & FM

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2

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3

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Sample questions

Four questions from our question bank. Try them, then open the worked solution.

Question 1Exam FM · Annuities

Payments of 500 are made at the end of each year for 10 years into a fund earning an annual effective interest rate of 5%. Calculate the accumulated value of the fund immediately after the last payment.

  • (A) 5,000.00
  • (B) 6,144.47
  • (C) 6,288.95
  • (D) 6,603.39
  • (E) 8,144.47
Show worked solution

The accumulated value of an annuity-immediate is 500 · s10| at 5%.

s10| = (1.0510 − 1) / 0.05 = (1.628895 − 1) / 0.05 = 12.577893

500 × 12.577893 = 6,288.95

Answer: (C). Option (D) is the annuity-due value (payments at the start of each year).

Question 2Exam FM · Interest rates

A bank quotes a nominal annual interest rate of 6% compounded monthly. Calculate the equivalent annual effective interest rate.

  • (A) 6.000%
  • (B) 6.090%
  • (C) 6.136%
  • (D) 6.168%
  • (E) 6.184%
Show worked solution

The monthly effective rate is 0.06 / 12 = 0.005.

i = (1.005)12 − 1 = 1.061678 − 1 = 0.061678

Answer: (D) 6.168%. Options (B) and (C) come from semi-annual and quarterly compounding; option (E) from continuous compounding.

Question 3Exam FM · Loans

A loan of 20,000 is repaid with level monthly payments at the end of each month for 5 years. The nominal annual interest rate is 9% compounded monthly. Calculate the monthly payment.

  • (A) 333.33
  • (B) 398.32
  • (C) 415.17
  • (D) 418.28
  • (E) 483.33
Show worked solution

The monthly rate is j = 0.09 / 12 = 0.0075, with n = 60 payments.

a60| = (1 − 1.0075−60) / 0.0075 = (1 − 0.638700) / 0.0075 = 48.173374

P = 20,000 / 48.173374 = 415.17

Answer: (C). Option (A) ignores interest entirely; option (E) adds simple interest to the principal.

Question 4Exam P · Probability

For events A and B: P(A) = 0.6, P(B) = 0.5 and P(A ∪ B) = 0.8. Calculate P(A | B).

  • (A) 0.30
  • (B) 0.50
  • (C) 0.60
  • (D) 0.75
  • (E) 0.80
Show worked solution

By inclusion–exclusion: P(A ∩ B) = 0.6 + 0.5 − 0.8 = 0.3

P(A | B) = P(A ∩ B) / P(B) = 0.3 / 0.5 = 0.6

Answer: (C). Since P(A | B) = P(A), the events are independent.

Exams

We launch with two exams and add more based on demand. Each exam has study notes, quizzes and practice papers.

ExamBodyStatus
Exam P — ProbabilitySOALaunching first
Exam FM — Financial MathematicsSOALaunching first
CM1 / CS1IFoAPlanned
A211 Financial MathematicsASSAPlanned

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Questions

The short answers.

Are these real past exam questions?

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Quizzes are short, online and focused on one topic at a time, with instant marking. Practice papers are full-length mock exams in PDF, matching the real exam's format and timing, with a complete memo.

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Numerical answers are calculated by code, separately from the written solution, and every step in the solution is checked against that calculation. Each question also has a report button so errors are fixed fast.

Do I need the study notes if I have an official study manual?

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When does it launch?

Soon, starting with SOA Exam P and Exam FM. Email hello@mintedpapers.com with any questions.

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