Revision as of 20:21, 18 November 2023 by Admin (Created page with "On his 65th birthday, an investor withdrew an amount P from a fund of 1,000,000 and withdrew the same amount on each successive birthday. On the date of his 82nd birthday, the fund was again equal to 1,000,000 after the withdrawal. The fund earns an annual effective interest rate of 10%. Calculate P. <ul class="mw-excansopts"><li>81,655</li><li>88,915</li><li>90,909</li><li>98,879</li><li>109,729</li></ul> {{soacopyright | 2023 }}")
Nov 18'23
Exercise
On his 65th birthday, an investor withdrew an amount P from a fund of 1,000,000 and withdrew the same amount on each successive birthday. On the date of his 82nd birthday, the fund was again equal to 1,000,000 after the withdrawal.
The fund earns an annual effective interest rate of 10%.
Calculate P.
- 81,655
- 88,915
- 90,909
- 98,879
- 109,729
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
Nov 18'23
Solution: B
[[math]]
\begin{aligned} & 1,000,000(1.10)^{17}-P s_{\overline{180}| 0.10}=1,000,000 \\ & 5,054,470.285-P(45.59917)=1,000,000 \\ & 4,054,470.285=P(45.59917) \\ & P=88,915.43\end{aligned}
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.