SOA Exam FM Sample Question 5
Study guide: Exam FM-2
1000 is deposited into Fund X, which earns an annual effective rate of 6%. At the end of each year, the interest earned plus an additional 100 is withdrawn from the fund. At the end of the tenth year, the fund is depleted.
The annual withdrawals of interest and principal are deposited into Fund Y, which earns an annual effective rate of 9%.
Calculate the accumulated value of Fund Y at the end of year 10.
- A) 1519
- B) 1819
- C) 2085
- D) 2273
- E) 2431
Answer this question and see the worked solution