Extra Problems 2a

Extra Problems 2a - annual nominal rate of 6% compounded...

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ACTSC 231 Problem Set 2a 1. A person deposits $1000 in to a fund at time 0 and $500 at time 1/2. Find the accumulated value in the fund at the end of the second year. Assume t = 3+2 t 50 . 2. $200 is put into fund A at time 0, earns interest at 4% per annum com- pounded quarterly. $300 is put into fund B at time 1, which earns an
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Unformatted text preview: annual nominal rate of 6% compounded semiannually. At what point is time is the amount in fund B 3 times the amount in fund A? 3. Rank the following rates from worst to best from the borrowers point of view: (a) i = 5 : 00% (b) i (2) = 4 : 95% (c) d = 4 : 75% (d) & = 4 : 85% (e) d (12) = 4 : 80% 1...
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This note was uploaded on 02/07/2010 for the course ACTSC 231 taught by Professor Chisholm during the Spring '09 term at Waterloo.

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