SOA Exam FM Sample Question 337
Study guide: Exam FM-2
A purchase of 5020 is paid off with a loan at an annual effective interest rate of 6.25%. Payments are made at the end of each year until the loan is paid off. Each payment is 360 except for a final balloon payment, which is less than 720.
Calculate the amount of the balloon payment.
- A) 611
- B) 630
- C) 649
- D) 667
- E) 685
Answer this question and see the worked solution
Concepts tested
- Loan Amortization
- Loans
- Amortization
- Outstanding Balance
- Principal
- Term of Loan
- Balloon Payment
- Final Payment