SOA Exam FM Sample Question 177
Study guide: Exam FM-2
A ten-year loan will be repaid with payments at the end of each year. Each of the first five payments is 1000 and each of the next five payments is 2000.
Interest on the loan is charged at an annual effective rate of 10%.
Calculate the total interest paid in the first five payments.
- A) 2418
- B) 2646
- C) 2978
- D) 4083
- E) 4249
Answer this question and see the worked solution