SOA Exam FM Sample Question 88
Study guide: Exam FM-2
Tim takes out an n-year loan with equal annual payments at the end of each year.
The interest portion of the payment at time (n-1) is equal to 0.5250 of the interest portion of the payment at time (n-3) and is also equal to 0.1427 of the interest portion of the first payment.
Calculate n.
- A) 18
- B) 20
- C) 22
- D) 24
- E) 26
Answer this question and see the worked solution