SOA Exam FM Sample Question 232
Study guide: Exam FM-2
A loan of 4000 has an annual effective interest rate of 5%. The loan is repaid by payments of 250 at the end of each year for ten years along with a final balloon payment at the end of the eleventh year.
Calculate the outstanding loan balance at the beginning of the seventh year.
- A) 3593
- B) 3660
- C) 3790
- D) 3856
- E) 3910
Answer this question and see the worked solution
Concepts tested
- Loan Amortization
- Loans
- Amortization
- Outstanding Balance
- Principal
- Term of Loan
- Balloon Payment
- Final Payment