SOA Exam FM Sample Question 67
Study guide: Exam FM-2
A loan of 10,000 is repaid with a payment made at the end of each year for 20 years. The payments are 100, 200, 300, 400, and 500 in years 1 through 5, respectively. In the subsequent 15 years, equal annual payments of X are made. The annual effective interest rate is 5%.
Calculate X.
- A) 842
- B) 977
- C) 1017
- D) 1029
- E) 1075
Answer this question and see the worked solution