MA/STAT 170 Final, Fall 2009
What to study:
A. Be able to define/explain all of the “Key Terms” and “Other Important Terms” at
B. Be able to define/explain all of the terms appearing in bold in both J&L and
Brown, except Brown 2.4 and 2.7, which are not on the test.
D. Study the reading Fault vs NoFault on the web
E. Know the parts of the Home Owner’s policy.
F.
Know the typical automotive coverages.
1)
At the end of year 1 I deposit $1,000 into an account that is earning 4% interest
compounded annually.
At the end of each subsequent year I deposit 2 % less than I
did the previous year.
Thus, for example, at the end of year 2 I deposit $980 and at
the end of year 3 I deposit $960.40.
How much do I have after the 40
th
deposit?
8 pts
See the Numerical Solutions pdf.
2) On Jan . 1, 2009, I won an award that pays $10,000 dollars every year for
n
years
with the first payment immediately.
Find
n
, given that at 3% annual interest, the
present value
of my award on Jan . 1, 2009 was approximately $ 300,000.
8 pts
See the Numerical Solutions pdf.
3) I take out a $400,000, 20 year loan at 6% interest
compounded monthly
.
a.
Find my monthly payment (paid at the end of each month).
7 pts
See the Numerical Solutions pdf.
b.
How much do I owe after the 10
th
payment?
5 pts
See the Numerical Solutions pdf.
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View Full Document4) What is a fraternal benefit society?
Give two legal requirements for a fraternal
benefit society to sell insurance.
6 pts
A fraternal benefit society is an organization formed for the benefit of its members.
To
sell insurance:
1.
It must sell insurance only to its members.
2.
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 Spring '08
 Staff
 insurance company, Numerical Solutions pdf

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