SOA Exam FM Sample Question 243
Study guide: Exam FM-2
A 15-year loan of 60,000 is to be repaid with payments of X at the end of each month based on an annual nominal interest rate of 7.5%, convertible monthly.
When the loan balance is 49,893, the loan is refinanced at an annual nominal interest rate of 6.0%, convertible monthly. Payments remain at X and are paid at the end of each month for as long as necessary, with a smaller final payment.
Calculate the total number of payments, including the smaller final payment.
- A) 162
- B) 164
- C) 166
- D) 168
- E) 170
Answer this question and see the worked solution