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UNIVERSITY OF ILLINOIS AT URBANACHAMPAIGN
Actuarial Science Program
DEPARTMENT OF MATHEMATICS
Math 210
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Theory of Interest
Fall, 2010
Homework Assignment # 2 (max. points = 10)
Due at the beginning of class on Thursday, September 9, 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)
At a nominal annual interest rate of 6% convertible monthly, how long will it take you to
double your money?
(Provide an answer in
years
, to two decimal places.)
(2)
If you invest $1,000 now, how much will you have 54 months from now if your money
grows at a nominal annual rate of 8% convertible semiannually?
(3)
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This note was uploaded on 09/22/2010 for the course MATH MATH 210 taught by Professor Rickgorvett during the Fall '10 term at University of Illinois, Urbana Champaign.
 Fall '10
 RickGorvett
 Math, Actuarial Science

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