SOA Exam FM Sample Question 462
Study guide: Exam FM-2
Wilma takes out a loan of 5,000,000 to start a new business. She will repay the loan with level semiannual payments of 303,244.53, with the first payment due in six months.
The loan payments are based on an annual nominal interest rate of 6.5% convertible semiannually.
Immediately after the tenth payment, the outstanding loan balance is X.
Calculate X.
- A) 1,483,350
- B) 2,350,407
- C) 2,916,667
- D) 3,367,821
- E) 4,330,426
Answer this question and see the worked solution