SOA Exam FM Sample Question 218
Study guide: Exam FM-2
A 25-year loan is being repaid with payments of 1300 at the end of each year. The loan payments are based on an annual effective interest rate of 8%.
The borrower pays an additional 4000 at the time of the fifth payment and will repay the remaining balance with a payment of X at the end of each of the subsequent ten years.
Calculate X.
- A) 893
- B) 1300
- C) 1306
- D) 1500
- E) 1902
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