SOA Exam FM Sample Question 134
Study guide: Exam FM-2
A 25-year loan is being repaid with annual payments of 1300 at an annual effective rate of interest of 7%. The borrower pays an additional 2600 at the time of the 5th payment and wants to repay the remaining balance over 15 years.
Calculate the revised annual payment.
- A) 1054.58
- B) 1226.65
- C) 1300.00
- D) 1369.38
- E) 1512.12
Answer this question and see the worked solution