Question 10 • FT GMS AMDM B IC – 72
Because each $80,121 payment is made at the end of the year, this is an ordinary annuity. Its present value is $80,121 × [1 − (1.10)^−20] ÷ 0.10, which is approximately $682,115.24. So the amount to deposit is choice C, $682,115.24.
AI-written and checked against the verified answer.