Question 1
An investment of ₹10,000 grows to ₹12,100 after 2 years under annual compound interest. What is the effective annual rate of interest?
Correct Answer:
10%
Question 2
If the nominal rate of interest convertible quarterly is 8% per annum, what is the equivalent effective annual rate of interest?
Correct Answer:
8.24%
Question 3
The force of interest is constant at δ = 0.06 per annum. What is the present value of ₹1 payable in 5 years?
Correct Answer:
0.7408
Question 4
Which relationship correctly links the annual effective rate of interest i, the rate of discount d, and the discount factor v?
Correct Answer:
d = i × v
Question 5
An accumulation function is given by A(t) = 1 + 0.04t + 0.002t^2. What is the force of interest δ(t) at time t = 5?
Correct Answer:
0.0480
Question 1
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Prepare with the IAI CM1 Practice Questions - IAI Subject CM1 Actuarial Mathematics Exam practice quiz. This question bank includes 100 questions covering rate, life, interest, years, and value. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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IAI CM1 Practice Questions - IAI Subject CM1 Actuarial Mathematics Exam

This practice set contains 100 questions from the matching question bank and focuses on rate, life, interest, years, and value. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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