SOA Exam FM Sample Question 302
Study guide: Exam FM-2
Susan receives annual payments from a 20-year annuity-immediate. The payment in year 1 is 100 and in each succeeding year the payment is 90% of the prior year's payment.
Upon receipt of each payment, Susan invests the payment in a savings account earning interest at a 3% annual effective rate.
Calculate the balance in the savings account immediately after Susan invests the last annuity payment.
- A) 696
- B) 717
- C) 739
- D) 1296
- E) 1335
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