SOA Exam FM Sample Question 2
Study guide: Exam FM-2
Kathryn deposits 100 into an account at the beginning of each 4-year period for 40 years. The account credits interest at an annual effective interest rate of i.
The accumulated amount in the account at the end of 40 years is X, which is 5 times the accumulated amount in the account at the end of 20 years.
Calculate X.
- A) 4695
- B) 5070
- C) 5445
- D) 5820
- E) 6195
Answer this question and see the worked solution
Concepts tested
- Annuities
- Level Annuity
- Accumulated Value
- Annuity Due
- Annuity Immediate
- Level Payment Annuity
- Term of Annuity