Original payments earn an annual effective interest rate

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Chris invests X at the beginning of each year for 8 years. The original payments earn an annual effective interest rate of 5%, but the interest received on the original payments is reinvested at an annual effective interest rate of 3.5%. If Chris has a total of 9500 at the end of 8 years, calculate X.

A 954 B 986 C 997 D 1011 E 1050

Reference no: EM13950277

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