SOA Exam FM Sample Question 413
Study guide: Exam FM-2
A graduate takes out a 60-month car loan at an annual nominal interest rate of 3% convertible monthly. The loan provides for a payment of 359.37 at the end of each month. The graduate failed to make the 25th and 26th payments. Beginning with the 27th month the graduate resumes payments of 359.37 at the end of each month, with a final balloon payment at the end of the 60th month made necessary by the two missed payments.
Calculate the outstanding loan balance immediately following the payment at the end of the 36th month.
- A) 8298
- B) 8361
- C) 8723
- D) 9036
- E) 9099
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