SOA Exam FM Sample Question 288
Study guide: Exam FM-2
A 15-year loan with an annual effective interest rate of 6% has payments of 400 at the end of each year. At the time of the fifth payment, the borrower pays an extra 1000 and then repays the balance over five years with a revised annual payment of X.
Calculate X.
- A) 264.13
- B) 435.38
- C) 461.51
- D) 556.46
- E) 698.90
Answer this question and see the worked solution