Actuarial Notes

SOA Exam FM Sample Question 380

Study guide: Exam FM-2

Annual payments of 240 are made at the end of each year to repay a loan of 3400. The payments are based on an annual effective interest rate of 4.5%. The loan is settled with a drop payment of X.

Calculate X.

  • A) 1.61
  • B) 4.53
  • C) 8.83
  • D) 12.48
  • E) 13.04

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