SOA Exam FM Sample Question 439
Study guide: Exam FM-2
Wendy borrows 20,000 based on an annual effective interest rate of 8% and agrees to repay the loan with level end-of-year payments for 40 years. Immediately after the 20th payment, Wendy repays the remaining balance by taking out a new loan with an annual effective interest rate of 6% and level annual end-of-year payments for 20 years.
Calculate the sum of the 40 payments made by Wendy.
- A) 50,011
- B) 58,147
- C) 60,007
- D) 62,257
- E) 67,088
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