Actuarial Notes

SOA Exam FM Sample Question 246

Study guide: Exam FM-2

A loan of X is repaid with level payments of R payable at the end of each year for n years.

You are given:

  • i) The interest paid in year 1 is 797.50.
  • ii) The principal repaid in year n - 4 is 865.
  • iii) The principal outstanding at the end of year n - 1 is 1144.50.

Determine X.

  • A) 9,500
  • B) 10,000
  • C) 10,500
  • D) 11,000
  • E) 11,500

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