Exercise
ABy Admin
Nov 19'23
Answer
Solution: D
Value of fund after 20 years:
[[math]]
\begin{aligned}
500\ddot{s}_{\overline{{{120}}|0.01}}(1.01)^{120}=383,404.42 \\
383,404.42=\frac{X}{d}=\frac{X}{i}(1+i)=\frac{X}{0.01}(1.01) \\
X = 3796.08.
\end{aligned}
[[/math]]
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.