SOA Exam FM Sample Question 277
Study guide: Exam FM-2
An actuary's child will be going to college 15 years from now. To save for the estimated cost of 2000, the actuary makes deposits into a fund at the end of each year for the next 15 years. The first deposit is X. Each subsequent deposit is 3% larger than the previous deposit.
The fund earns an annual effective rate of 8%.
Calculate X.
- A) 45
- B) 57
- C) 62
- D) 67
- E) 88
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