SOA Exam FM Sample Question 6
Study guide: Exam FM-2
A 20-year loan of 1000 is repaid with payments at the end of each year.
Each of the first ten payments equals 150% of the amount of interest due. Each of the last ten payments is X.
The lender charges interest at an annual effective rate of 10%.
Calculate X.
- A) 32
- B) 57
- C) 70
- D) 97
- E) 117
Answer this question and see the worked solution