Revision as of 00:24, 19 November 2023 by Admin (Created page with "'''Solution: D''' The amount borrowed is <math>1000a_{\overline{5}|0.01} + 2000v^5a_{\overline{5}|0.1} = 8498.35</math>. The outstanding balance after five years is <math>2000a_{\overline{5}|0.1} = 7581.57</math>. The principal repaid is 8498.35 – 7581.57 = 916.78. The interest paid is 5000 – 916.78 = 4-83.22. {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 19'23
Answer
Solution: D
The amount borrowed is [math]1000a_{\overline{5}|0.01} + 2000v^5a_{\overline{5}|0.1} = 8498.35[/math]. The outstanding balance after five years is [math]2000a_{\overline{5}|0.1} = 7581.57[/math]. The principal repaid is 8498.35 – 7581.57 = 916.78. The interest paid is 5000 – 916.78 = 4-83.22.
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.