SOA Exam FM Sample Question 323
Study guide: Exam FM-2
A loan of 20,000 is to be repaid with payments at the end of each year for ten years. The first payment is X. Each subsequent payment is 6% greater than the preceding payment.
The loan payments are based on an annual effective interest rate of 10%.
Calculate the loan balance immediately after the eighth payment.
- A) 6685
- B) 6937
- C) 7353
- D) 7794
- E) 8088
Answer this question and see the worked solution
Concepts tested
- Geometric Increasing Annuity
- Loan Amortization
- Loans
- Outstanding Balance
- Geometric Progression
- Non-level Annuities