SOA Exam FM Sample Question 392
Study guide: Exam FM-2
Payments of 200 are invested at the beginning of each year for five years. The payments earn interest at an annual effective interest rate of i. The interest is reinvested at the end of each year at an annual effective rate of 6.00%. At the end of the five-year period, the value of the fund including both the sum of the annual payments and the accumulated value of the interest is 1260.
Calculate i.
- A) 8.00%
- B) 8.75%
- C) 10.00%
- D) 11.25%
- E) 12.25%
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