CM1 Practice Questions

Q. An investor wishes to obtain a rate of interest of 3% per annum effective froma 91-day treasury bill.

Calculate:

(a) the price that the investor must pay per £100 nominal.

(b) the annual simple rate of discount from the treasury bill. [3]

SOLUTION:

#CM1 #ACTUARY #aNNaCTUARY #ActuarialExams