SOA Exam FM Sample Question 272
Study guide: Exam FM-2
A 100,000 loan has an annual nominal interest rate of 8% convertible quarterly. The loan will be repaid with quarterly payments and the first payment is due three months from the date of the loan.
For the first five years each payment will be 2500. All payments thereafter will be 5000 except for a final balloon payment, which will be less than 10,000.
Calculate the balloon payment.
- A) 7920
- B) 8078
- C) 9056
- D) 9154
- E) 9237
Answer this question and see the worked solution