Exercise


ABy Admin
Nov 22'23

Answer

Solution: B

First find the amount of the outstanding balance after the 14th payment:

[[math]] 450 a_{\overline{15}|0.11} = 3235.89 [[/math]]

After the extra 1,400 the balance is: 3235.89 – 1400 = 1835.89. Thus the revised payments would be:

[[math]] 1835.89 = x a_{\overline{8}|0.11} \implies x = 356.75 [[/math]]

Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.

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