MA373 S09 Test 2 version 1

MA373 S09 Test 2 version 1 - 1. (11 points) You are given...

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1. (11 points) You are given the following table: Year 1 Year2 Year 3 Year 4 Year 5 Portfolio Year 1995 .0850 .0825 .0800 .0780 .0760 .0730 2000 1996 .0825 .0800 .0775 .0755 .0735 .0705 2001 1997 .0800 .0775 .0750 .0730 .0710 .0680 2002 1998 .0750 .0725 .0071 .0690 .0670 .0650 2003 1999 .0700 .0675 .0655 .0640 .0635 .0610 2004 2000 .0650 .0630 .0610 .0590 .0580 .0570 2005 2001 .0600 .0575 .0560 .0540 .0530 .0520 2006 2002 .0550 .0530 .0510 .0500 .0510 .0525 2007 2003 .0500 .0480 .0490 .0500 .0515 .0540 2008 2004 .040 .0470 .0495 .0520 .0550 2005 .0500 .0535 .0550 .0575 2006 .0550 .0575 .0600 2007 .0600 .0620 2008 .0650 Nancy invests 1000 on January 1, 2000 in a fund which credits interest using the investment year method. She also invests 2000 on January 1, 2004 into a fund which credits interest using the portfolio method. Calculate the total amount that Nancy will have in the two funds as on December 31, 2006
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2. (12 points) Jennie is the recipient of a scholarship from the Purdue Actuarial Club. The scholarship pays 48 monthly payments to Jennie with the first payment being paid now. The first payment under the scholarship is 500. Each subsequent payment increases by 100 over the previous payment.
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This note was uploaded on 02/26/2012 for the course MA 373 taught by Professor Staff during the Fall '08 term at Purdue University-West Lafayette.

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MA373 S09 Test 2 version 1 - 1. (11 points) You are given...

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