SOA Exam FM Sample Question 287
Study guide: Exam FM-2
A loan with an annual nominal interest rate of 9%, convertible monthly, is repaid with 60 monthly payments. The first payment is 1000 and each succeeding payment is 2% less than the previous payment.
Calculate the outstanding loan balance immediately after the 40th payment is made.
- A) 6889
- B) 7289
- C) 7344
- D) 7407
- E) 7862
Answer this question and see the worked solution