SOA Exam FM Sample Question 48
Study guide: Exam FM-2
Tanner takes out a loan today and repays the loan with eight level annual payments, with the first payment one year from today. The payments are calculated based on an annual effective interest rate of 4.75%. The principal portion of the fifth payment is 699.68.
Calculate the total amount of interest paid on this loan.
- A) 1239
- B) 1647
- C) 1820
- D) 2319
- E) 2924
Answer this question and see the worked solution