Revision as of 00:00, 19 November 2023 by Admin (Created page with "'''Solution: B''' The amount of principal repaid at payment 15 is (where R is the quarterly payment) <math display = "block"> 10.030.27=R v^{0.13+1}=R(1.03)^{-26}\Rightarrow R=10.030.27(1.03)^{26}=21.631.19. </math> The amount of interest in payment 25 is <math display = "block"> 21,631.19(1-{ v}^{40-25+1})=21,631.19(1-1.03^{-16})=8,151.35. </math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 19'23
Answer
Solution: B
The amount of principal repaid at payment 15 is (where R is the quarterly payment)
[[math]]
10.030.27=R v^{0.13+1}=R(1.03)^{-26}\Rightarrow R=10.030.27(1.03)^{26}=21.631.19.
[[/math]]
The amount of interest in payment 25 is
[[math]]
21,631.19(1-{ v}^{40-25+1})=21,631.19(1-1.03^{-16})=8,151.35.
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.