Emmet deposits level payments of X at the beginning of each year for 5 years into Fund A.

Each year, the principal in Fund A at the beginning of the year earns an annual effective interest rate of 6%, payable as an interest payment at the end of the year.

The interest payments each year do not remain in Fund A, but instead are immediately reinvested in Fund B, which earns an annual effective interest rate of 3%.

At the end of 5 years, the sum of the accumulated values in Fund A and Fund B is $800. Find X. (Hint: draw the cash flows for Fund A and Fund B on a single time diagram.)

(a) 134.75 (b) 137.74 (c) 142.39 (d) 150.42 (e) 150.67