Ten thousand club members age 21 set up a fund that earns interest at i = 6%. The probability is 95% that sufficient money will be on hand to pay 1 to each member who survives to age 80. If mortality follows the Illustrative Life Table, determine the initial amount in the fund.
The answer is 133.51. From the table, I calulated the probability of a 21 year old living to age 80 (59p21) = .407411. I think the amount in the fund at the end would be x*(1.06)^59 , but I'm not sure how to factor in the probabilities and put it all together.
Thank you!