# MATH 210 HW #1 - UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN...

This preview shows pages 1–2. Sign up to view the full content.

UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN Actuarial Science Program DEPARTMENT OF MATHEMATICS Math 210 P r o f . R i c k G o r v e t t Theory of Interest Fall, 2010 Homework Assignment # 1 (max. points = 10) Due at the beginning of class on Thursday, September 2, 2010 You are encouraged to work on these problems in groups of no more than 3 or 4. However, each student must hand in her/his own answer sheet. Please show your work – enough to show that you understand how to do the problem – and circle your final answer. Full credit can only be given if the answer and approach are appropriate. Please give answers to two decimal places – e.g., xx.xx% and \$xx,xxx.xx . (1) You invest \$10,000 now, at an annual simple interest rate of 10%. What is the effective rate of interest during the 6 th year of your investment? (2) Suppose that the accumulation function for an account is ) 4 1 ( ) ( it t a + = . At time 0, you invest \$1,000 in this account. If the value in the account at time 5 is \$1,700, what is

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

MATH 210 HW #1 - UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online