SOA Exam FM Sample Question 21
Study guide: Exam FM-2
Seth, Janice, and Lori each borrow 5000 for five years at an annual nominal interest rate of 12%, compounded semi-annually.
Seth has interest accumulated over the five years and pays all the interest and principal in a lump sum at the end of five years.
Janice pays interest at the end of every six-month period as it accrues and the principal at the end of five years.
Lori repays her loan with 10 level payments at the end of every six-month period.
Calculate the total amount of interest paid on all three loans.
- A) 8718
- B) 8728
- C) 8738
- D) 8748
- E) 8758
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