SOA Exam FM Sample Question 191
Study guide: Exam FM-2
A five-year loan has an annual nominal interest rate of 30%, convertible monthly. The loan is scheduled to be repaid with level monthly payments of 500, beginning one month after the date of the loan.
The borrower misses the thirteenth through the eighteenth payments, but increases the next six payments to X so that the final 36 payments of 500 will repay the loan.
Calculate X.
- A) 1070
- B) 1075
- C) 1080
- D) 1150
- E) 1160
Answer this question and see the worked solution