SOA Exam FM Sample Question 305
Study guide: Exam FM-2
A loan of 50,000 is based on an annual effective interest rate of 6%.
You are given:
- i) The loan is to be repaid with quarterly payments of 2125 and a final drop payment.
- ii) The first payment is due 1.5 years after the loan is taken out.
Calculate the number of payments of 2125 to be made.
- A) 28
- B) 29
- C) 30
- D) 31
- E) 32
Answer this question and see the worked solution