Revision as of 01:41, 22 November 2023 by Admin (Created page with "Monthly rate of interest: <math>j=(1+.08)^{1 / 12}=.00643</math> <math display="block"> \begin{aligned} & 140,000=x a_{\overline{480}| .00667 }\\ & x=927.513 \end{aligned} </math> outstanding balance after 20 years <math display="block"> 927.513=\mathrm{a}_{\overline{480} | .00667}=114,611.417 </math> doubling the payments: <math display="block"> 927.513(2)=1855.03 </math> new amount of years: <math display="block"> \begin{aligned} & 114,611.417=1855.03 \mathrm...")
Exercise
ABy Admin
Nov 22'23
Answer
Monthly rate of interest: [math]j=(1+.08)^{1 / 12}=.00643[/math]
[[math]]
\begin{aligned}
& 140,000=x a_{\overline{480}| .00667 }\\
& x=927.513
\end{aligned}
[[/math]]
outstanding balance after 20 years
[[math]]
927.513=\mathrm{a}_{\overline{480} | .00667}=114,611.417
[[/math]]
doubling the payments:
[[math]]
927.513(2)=1855.03
[[/math]]
new amount of years:
[[math]]
\begin{aligned}
& 114,611.417=1855.03 \mathrm{a}_{\overline{n}| .00667} \\
& \mathrm{n}=76.916=77
\end{aligned}
[[/math]]
total paid
[[math]]
927.513(240)+1855.03(77)=365,440.43
[[/math]]
interest
[[math]]
365,440.43-140,000=225,440.43
[[/math]]
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.