SOA Exam FM Sample Question 187
Study guide: Exam FM-2
A mortgage for 125,000 has level payments at the end of each month and an annual nominal interest rate compounded monthly. The balances owed immediately after the first and second payments were 124,750 and 124,498, respectively.
Calculate the number of payments needed to pay off the mortgage.
- A) 198
- B) 199
- C) 200
- D) 201
- E) 202
Answer this question and see the worked solution