Revision as of 22:15, 18 November 2023 by Admin (Created page with "'''Solution: A''' <math display = "block"> \begin{align*} 699.68=P\nu^{8-5+1}\\ P=842.39~(\textrm{annual payment})\\ P_{1}=\frac{609.68}{1.0475^{4}}=581.14 \\ I_{1}=842.39-581.14=261.25 \\ L =\frac{261.25}{0.0475}=5500 (\textrm{loan amount}) \end{align*} </math> Total interest = 842.39(8) - 5500 = 1239.12. {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 18'23
Answer
Solution: A
[[math]]
\begin{align*}
699.68=P\nu^{8-5+1}\\ P=842.39~(\textrm{annual payment})\\ P_{1}=\frac{609.68}{1.0475^{4}}=581.14 \\
I_{1}=842.39-581.14=261.25 \\
L =\frac{261.25}{0.0475}=5500 (\textrm{loan amount})
\end{align*}
[[/math]]
Total interest = 842.39(8) - 5500 = 1239.12.
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.