SOA Exam FM Sample Question 79
Study guide: Exam FM-2
John finances his daughter's college education by making deposits into a fund earning interest at an annual effective rate of 8%. For 18 years he deposits X at the beginning of each month.
In the 16th through the 19th years, he makes a withdrawal of 25,000 at the beginning of each year. The final withdrawal reduces the fund balance to zero.
Calculate X.
- A) 207
- B) 223
- C) 240
- D) 245
- E) 260
Answer this question and see the worked solution