SOA Exam FM Sample Question 33
Study guide: Exam FM-2
Seth borrows X for four years at an annual effective interest rate of 8%, to be repaid with equal payments at the end of each year. The outstanding loan balance at the end of the third year is 559.12.
Calculate the principal repaid in the first payment.
- A) 444
- B) 454
- C) 464
- D) 474
- E) 484
Answer this question and see the worked solution