SOA Exam FM Sample Question 374
Study guide: Exam FM-2
A car dealership offers a 120-month loan for a blue car costing 30,000, with an annual nominal interest rate of 9% compounded monthly and level end-of-month payments.
The dealership also offers a loan for a red car costing 33,000, with the same interest rate and end-of-month payments as for the loan for the blue car.
Calculate the number of months needed to pay off the loan for the red car.
- A) 132
- B) 135
- C) 138
- D) 140
- E) 141
Answer this question and see the worked solution