SOA Exam FM Sample Question 210
Study guide: Exam FM-2
A loan of 10,000 is repaid at an annual effective interest rate of 8%, with equal payments made at the end of each year for ten years. The lender immediately deposits each payment into an account earning an annual effective interest rate of 10%.
Calculate the total amount of interest earned by the lender during the term of the loan.
- A) 11,589
- B) 13,576
- C) 13,751
- D) 14,191
- E) 14,903
Answer this question and see the worked solution