SOA Exam FM Sample Question 280
Study guide: Exam FM-2
At the beginning of each year, a payment of 5000 is invested in a fund. The payments earn an annual effective interest rate of 8%. At the end of each year, the interest is reinvested in the fund at an annual effective interest rate of 5%. The amount in the fund at the end of ten years, immediately prior to the 11th annual payment, is X.
Calculate X to the nearest 100.
- A) 67,600
- B) 70,300
- C) 75,700
- D) 78,200
- E) 80,700
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