Revision as of 23:12, 18 November 2023 by Admin (Created page with "'''Solution: E''' The monthly payment on the original loan is <math display = "block">\frac{65000}{a_{\overline{180}|8/12 \%}}=621.17.</math> After 12 payments the outstanding balance is <math display = "block">621.17a_{\overline{168}|8/12 \%}=62,661.40</math>. The revised payment is <math display = "block">\frac{62,661.40}{a_{\overline{168}|6/12\%}}=552.19. </math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 18'23
Answer
Solution: E
The monthly payment on the original loan is
[[math]]\frac{65000}{a_{\overline{180}|8/12 \%}}=621.17.[[/math]]
After 12 payments the outstanding balance is
[[math]]621.17a_{\overline{168}|8/12 \%}=62,661.40[[/math]]
. The revised payment is
[[math]]\frac{62,661.40}{a_{\overline{168}|6/12\%}}=552.19. [[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.