SOA Exam FM Sample Question 296
Study guide: Exam FM-2
On the first of the month, Chuck took out a business loan for 50,000, with payments at the end of each month based on an annual nominal interest rate compounded monthly. Each monthly payment is equal to 800, except for a final drop payment.
Immediately after the first payment the balance owed was 49,800.
Calculate the number of payments that Chuck needed to pay off the loan.
- A) 115
- B) 117
- C) 119
- D) 121
- E) 123
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