SOA Exam FM Sample Question 332
Study guide: Exam FM-2
An investor wants to accumulate 150,000 to purchase a business in ten years. The investor deposits 14,000 into an account at the beginning of each of years one through five. The investor deposits an additional amount X at the beginning of years four and five to meet this goal. The account earns interest at an annual effective rate of 8%.
Calculate X.
- A) 2,113
- B) 2,592
- C) 5,958
- D) 9,595
- E) 11,574
Answer this question and see the worked solution