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At time t = 0, Ned deposits X into a fund crediting interest at an effective...

At time t = 0, Ned deposits X into a fund crediting interest at an effective annual interest rate of 6%.

At the end of each year in years 6 through 10, he uses the fund to purchase an annuity-due of 2000/year for 12 years at an effective interest rate of 3%.

After the last annuity purchase at the end of year 10, the fund is empty.

Determine X. Possible answers are 64,500 or 69,500 or 78,500 or 81,000 or 86,500

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