SOA Exam FM Sample Question 451
Study guide: Exam FM-2
Paul makes level deposits of 1000 into a fund at the beginning of each quarter for five years. The first deposit occurs at t = 0, where t is in years.
Starting at t = 5, the amount of each quarterly deposit is 2% greater than the preceding deposit. The last such deposit occurs at t = 19.75.
Calculate the accumulated value of Paul's deposits at t = 20 based on an annual nominal interest rate of 5% compounded quarterly.
- A) 124,847
- B) 152,717
- C) 184,484
- D) 206,608
- E) 209,778
Answer this question and see the worked solution