Actuarial Notes

SOA Exam FM Sample Question 90

Study guide: Exam FM-2

A 5-year loan of 500,000 with an annual effective discount rate of 8% is to be repaid by level end-of-year payments.

If the first four payments had been rounded up to the next multiple of 1,000, the final payment would be X.

Calculate X.

  • A) 103,500
  • B) 111,700
  • C) 115,200
  • D) 125,200
  • E) 127,500

Answer this question and see the worked solution

Concepts tested

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