Actuarial Notes

SOA Exam FM Sample Question 161

Study guide: Exam FM-2

A small business takes out a 10-year loan with level end-of-quarter payments. The payments are based on an annual nominal interest rate of 12% convertible quarterly.

The amount of principal repaid in the 15th payment is 10,030.27.

Calculate the amount of interest paid in the 25th payment.

  • A) 7,521
  • B) 8,151
  • C) 9,467
  • D) 10,030
  • E) 11,601

Answer this question and see the worked solution

Concepts tested

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