A loan of 1000 is to be repaid by annual payments of 100 to commence at the end of the fifth year and to continue thereafter for as long as necessary. Find the time and amount of the final payment, if the final payment is to be larger than the regular payments.Assume i=4 1/2% (4.5 %)
ref:- page 91 Q32 theory of interest by stephen G kellison
A fund earning 8% effective is being accumulated with payments of 500 at the begining of each year for 20 years. find the maximum number of withdrawls which can be made at the ends of the years under the condition that once withdrawls start they must continue through the end of the 20-year period.
ref:- page91 Q 35 theory of interest by Stephen G kellison
''', maybe i'm having a brianfart right now, but those questions sound hard...but more importantly, they sound harder than anything soa would possibly ask. not to deter you from whatever works for you in your studying, but maybe as a side note, go over some practice exams from soa and look over the released 2005 fm exams for sample questions that soa would ask. i think the questions you just posted you could skip for now, especially if you are getting the other stuff. i hadn't seen any annuity questions that involved on the fm exams i've taken. just my opinion...