Revision as of 14:29, 19 November 2023 by Admin (Created page with "A 15-year loan with an annual effective interest rate of 6% has payments of 400 at the end of each year. At the time of the fifth payment, the borrower pays an extra 1000 and then repays the balance over five years with a revised annual payment of X. Calculate X. <ul class="mw-excansopts"><li>264.13</li><li>435.38</li><li>461.51</li><li>556.46</li><li>698.90</li></ul> {{soacopyright | 2023 }}")
Nov 19'23
Exercise
A 15-year loan with an annual effective interest rate of 6% has payments of 400 at the end of each year. At the time of the fifth payment, the borrower pays an extra 1000 and then repays the balance over five years with a revised annual payment of X.
Calculate X.
- 264.13
- 435.38
- 461.51
- 556.46
- 698.90
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
Nov 19'23
[[math]]
\begin{aligned}
& O B_5=400 a_{\overline{100.06}}-1000=1944.03 \\
& 1944.03=X a_{51} 0.06 \\
& X=461.51
\end{aligned}
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.