SOA Exam FM Sample Question 255
Study guide: Exam FM-2
Erin borrows X at an annual effective rate of 5%. If the principal and all accumulated interest is paid in one lump sum at the end of 20 years, 1000 more in interest would be paid than if the loan was repaid with level payments at the end of each of the first ten years.
Calculate X.
- A) 389
- B) 540
- C) 704
- D) 736
- E) 954
Answer this question and see the worked solution