SOA Exam FM Sample Question 171
Study guide: Exam FM-2
Company Q invests X at the end of each year for 25 years at an annual effective interest rate of 9%. Company R invests 100 at the end of each year for 25 years at an annual effective interest rate of 9%, but, at the end of each year, the interest earned is reinvested at an annual effective interest rate of 8%.
Immediately after the 25th payment, Company R's total investment, including the reinvested interest, has the same value as Company Q's investment.
Calculate X.
- A) 91.22
- B) 91.93
- C) 92.67
- D) 93.41
- E) 94.03
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