5	Let us take a look at an annuity with a monthly account cap on the maximum profits you can earn. If an investor deposits a $100,000 in this annuity, the interest will be credited based on the following rules: Each month, the percentage change in the S&P 500 will be calculated. The positive percentage is capped at 2% i.e. even if the monthly change is more than 2%, the change will be capped at 2%. The monthly change can be negative. Once the year is done, each monthly return is added and the total interest that can be added to the account is capped at 24%. The amount can never go negative. With this is in mind, assume the S&P 500 monthly returns are as follows for year 1 and year 2. How much will an investor who starts with $100,000 have at the end of year 2. The interest earned is calculated only at the end of the year based on the monthly returns
		% Change in year 1	Monthly Capped % Change	% Change in year 2	Monthly Capped % Change
	January	2.000		1.82
	February	(0.980)		(5.36)
	March	0.990		(1.42)
	April	0.980		2.87
	May	0.971		2.33
	June	0.962		(2.27)
	July	1.905		(3.26)
	August	(1.869)		(1.92)
	September	2.857		2.94
	October	(0.926)		(2.86)
	November	0.935		(0.98)
	December	2.778		-
	Total Change
	Interest Credited
	Beginning Balance	$ 100,000
	Balance at end of year