ACF329 Yet another something to help prepare for Exam 1
Warning: this is not a sample test.
Name:
Instructions: You should use one of the SOA approved calculators on this worksheet.
These problems are from the sample Exam FM problems you can access from the Society of Actu
aries webpages.
Note regarding problems about dollarweighted rate of returns (yield rates)
: the problems will not
specify whether you need the exact value or an approximation. You will need to decide what the
appropriate strategy is for each problem.
1. Bruce deposits 100 into a bank account. His account is credited interest at a nominal rate of
interest of 4% convertible semiannually.
At the same time, Peter deposits 100 into a separate account.
Peter’s account is credited
interest at a force of interest of
δ
.
After 7.25 years, the value each account is the same.
Calculate
δ
.
2. Eric deposits 100 into a savings account at time 0, which pays interest at a nominal rate of
i
, compounded semiannually.
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 Spring '08
 HIETMANN
 Time Value Of Money, Interest, Net Present Value, 1999

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