SOA Exam FM Sample Question 405
Study guide: Exam FM-2
A borrower plans to repay a loan of 12,000 with payments to be made at the end of each month for five years. The loan payments are based on an annual nominal interest rate of 12%, convertible monthly.
Each payment after the first will be 1% larger than the previous one.
Calculate the amount of principal repaid in the first payment.
- A) 82
- B) 120
- C) 147
- D) 202
- E) 223
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