Revision as of 12:34, 19 November 2023 by Admin (Created page with "'''Solution: D''' Using BA II Plus: <math display = "block"> \begin{aligned} & 60,000=X a_{\overline{180}|0.075 / 12} \\ & X=556.21 \\ & 49,893=556.21 a_{\overline{m}|0.075 / 12} \\ & m=132 \end{aligned} </math> So, <math>(180-132)=48</math> payments have been made so far: <math display="block"> \begin{aligned} & 49,893=556.21 a_{\overline{n}|{0.6 / 12}} \\ & n=119.3 \end{aligned} </math> Use 120 future payments including the smaller one. <math>48+120=168</math>. {{...")
Exercise
ABy Admin
Nov 19'23
Answer
Solution: D
Using BA II Plus:
[[math]]
\begin{aligned}
& 60,000=X a_{\overline{180}|0.075 / 12} \\
& X=556.21 \\
& 49,893=556.21 a_{\overline{m}|0.075 / 12} \\
& m=132
\end{aligned}
[[/math]]
So, [math](180-132)=48[/math] payments have been made so far:
[[math]]
\begin{aligned}
& 49,893=556.21 a_{\overline{n}|{0.6 / 12}} \\
& n=119.3
\end{aligned}
[[/math]]
Use 120 future payments including the smaller one. [math]48+120=168[/math].
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.