Scott takes out a loan with 29 annual payments of $450 each. With the14th payment, Scott pays an extra $1,400, and then pays the balance in 8 years with revised annual payments. The annual effective interest rate is 11%.
Calculate the amount of the revised payment.
- $2,359.45
- $356.75
- $288.09
- $154.8
- $255.31
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.
Lauren takes out a loan of $35,000. She pays this back by establishing a sinking fund and making 16 equal payments at the end of each year. The sinking fund earns 9% each year. Immediately after the 9th payment the sinking fund’s yield increases to 11%. At this time Lauren adjusts her sinking fund payment to X so that the fund will accumulate to $35,000 16 years after the original loan date.
Find X.
- $8,057.17
- $1,291.33
- $647.09
- $1,040.86
- $2,166.06
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.
Aiden takes out a 30 year loan for $24,000 to be repaid with payments at the end of each year consisting of interest on the loan and a sinking fund deposit. Interest is charged at a 16% annual rate. The sinking fund’s annual rate is 11%. However, beginning in the 13th year, the annual effective interest rate on the sinking fund drops to 8%. As a result, the payments are increased by X.
Calculate X.
- $228.01
- $348.60
- $447.12
- $273.41
- $337.67
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.
Michelle takes out a loan. It must be repaid with level annual payments based on an annual coupon rate of 4%. The 6th payment consists of $960 in interest and $340 of principal.
Calculate the amount of interest paid in the 14th payment.
- 465.31
- 711.23
- 588.77
- 13.83
- 834.69
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.
A loan of $30,000 is to be repaid by a level annuity payable monthly at the end of each month for 25 years, and calculated on the basis of an nominal interest rate of 12% per year, compounded monthly.
Calculate the monthly repayments.
- 313
- 316
- 360
- 404
- 420
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
A loan of $2000 is to be repaid at the end of each of the next 5 years at an annual interest rate of .06. Find the annual payment.
- 445
- 470
- 475
- 490
- 503
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
On January 1, 2010, Amil has the following options for repaying a loan.
- Sixty monthly payments of 100 beginning February 1, 2010.
- A single payment of 6000 at the end of K months.
Interest is at a nominal rate of 12% compounded monthly. The two options have the same present value.
Determine K.
- 29
- 29.5
- 30
- 30.5
- 31
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
A man buys a home for 250000. He pays 30000 in cash. The balance will be paid with a 25 year mortgage with [nominal annual] interest at 8% compounded semiannually. Find the level payment required under the mortgage at the end of each month.
- 1550
- 1430
- 1270
- 1680
- 1720
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
A loan of 5000 with interest at 5% per annum effective, will be repaid by payments of 1000 each made at the end of each of the first, second, third, and fourth years and a larger amount sufficient to retire the loan at the end of the fifth year. Find the amount payable at the end of the fifth year.
- 1856
- 1213
- 1617
- 1315
- 1380
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
Donald takes a loan to be paid with annual payments of 500 at the end of each year for 2n years. The annual effective interest rate is 4.94%. The sum of the interest paid in year 1 plus the interest paid in year n + 1 is equal to 720.
Calculate the amount of interest paid in year 10.
- 338
- 355
- 360
- 367
- 377
References
Hlynka, Myron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.