Exercise


ABy Admin
Nov 19'23

Answer

Solution: C

[[math]] \begin{aligned} & 10,000=P a_{\overline{20} \mid 0.015} \\ & P=582.46 \\ & O B_4=582.46 a_{\overline{16} \mid 0.015} \\ & O B_4=8230.86 \end{aligned} [[/math]]


Remaining payments total:

[[math]] \begin{aligned} & 16(582.46)=9319.32 \\ & 9319.32-8230.86=1088.46 \end{aligned} [[/math]]

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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