SOA Exam FM Sample Question 363
Study guide: Exam FM-2
An investor deposits 1000 at the beginning of each year for five years in a fund earning a 5% annual effective interest rate. The interest from this fund can be reinvested at a 4% annual effective interest rate.
Calculate the total accumulated value at the end of five years.
- A) 5058
- B) 5227
- C) 5436
- D) 5641
- E) 5791
Answer this question and see the worked solution