[SOA 11/88 #16] On January 1, an insurance company has 100,000 which is due to Linden as a life insurance death benefit. He chooses to receive the benefit annually over a period of 15 years, with the first payment immediately. The benefit he receives is based on an effective interest rate of 4% per annum. The insurance company earns interest at an effective rate of 5% per annum. Every July 1, the insurance company pays 100 in expenses and taxes to maintain the policy. At the end of nine years, the company has X remaining. Calculate X. (The answer is 53,900. )

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