SOA Exam FM Sample Question 256
Study guide: Exam FM-2
A 20-year loan of 500 based on a 5% annual effective interest rate is repaid with level installments at the end of each year.
Determine the installment in which the principal and interest portions are most nearly equal to each other.
- A) 1st
- B) 7th
- C) 10th
- D) 13th
- E) 20th
Answer this question and see the worked solution