SOA #3 - 1.. Course EM Which of the- fnlinwing exprassions...

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Unformatted text preview: 1.. Course EM Which of the- fnlinwing exprassions [ID-ES HUT raprescnt a definition [or a: '? {A} v"[{]+?fl"] 0" m z May 2005 4. An esrate pmvities a perpetuity with payments nt‘X at the end of each year. Seth, Susan, and Lori share the perpetuityr such the}. Seth receives the payments efX fer the first :1 years and Susan receives the payments efX Fer-the nextm years'efler vvhieh Lori receives all the remaining payments efX. which of the Fallen-ring represents the difference between the present value et‘Seth’s and Susan's payments using a eenstentrete of interest? -. yam {B} «fie—vvs] i (C) _ X[es—v'*'n;;]' grubmm Q)“ Lu) X [en —v""'a—] (E) X[vflg_vn+lam] h _ _ $4. Course Ffif 9'12 .- _ To anmnnuln‘ta BEIGE} at [he End of 3:: years, depusils of 93 are made at the end of each of ,- ' the. first-n years and 196 at the and of ehch of'the heart 13-: yeah. The annual eE'ective rate 01‘ intert is 1' . You an: givm (I +17)" = 2.!) . - 11: m m _ 4a. “IE- ” W” . -- , _ Emmi "n V“ n {A} I].15% _ - - ‘15}. @ (gg . , , . 1a - # v 9” (B) 11.15% 33pm. , _ . v * Qufl {C} 12-25% ' [D] 113% p (E) 13.25% Game 2. Novemher REM} 0 May BEIGE Kalhryu depoai’la lflfl iqu an account at the beginning ofaach 4-year period for 41} Foam. The amount credit-.5 httereat at an annual efi‘ccfiv: intereat rate of t. The accumulated amount in the account at the end of 4!] years: iaX, which is 5 times the accumulated amount in the account at the end of It} year-a. Calculath (A) 4595 {a} sum (C) 54-45 (D) 532a @ 5195 H any. on . l _ S a ' av. @- 27'. A. man turns 41} tndalylr and wishes to preside supplemental retirement incense of suns at ., the beginning of each mnnlh starting an his 651]” birthday. Starting today. he makes mumth ennuibutinns DIX to a fund Her 25 years. The fund earns a nominal rate nffi% enmpnunded mnmhly. Each lflflfl will psi-made for 9.155 efi-neame at1l1e beginning efeeeh month surfing en his 55* birthday until the eml efhis life. elm ‘5 Mei/mm Calculate X. 324'fl'11_!uL .W ill-wi' riv' HE— . (B) 325.39 ' ' " “#— (C) 325.12 [12) 355.45 — " {El 4511.55 Course 2, Nowember 29W ' o E 7 Ma}: 2mm :5 12. Which of the Following are characteristic: cfall pcrp-ctuilics? The prcscni value is equal to the first paymcnl divided by M the annual cfi’cctive intercsi,ra1c. 0k . Payments ccntinuc Harman—kw % 0% ngfi . [El-l Each payinan is equal to 111:: inlcrEEt cnmcd on the principal. \r" ' \ Mailm film; ,finHaaTJJJ <2- --' iii. {A} l only @ ii only lil' only {D} 11 n, and m [E] The correct mswcr is not given by (A), (B), [C], or [B]. 1:12. Cam-m: FM ..\ Ma)! 2000 CD A perpetuity peying l at 1he heghming of each fi—memh period hes a. present value of 20 . I A SBGD‘fld perpetuity pays X 211 The beginning every 2 years. Assuming the same man] efieeflve imeTem raie, the twin present values. are equal Belem-line X. {A} 3.5 {B} I 3‘5 ® 3.7 {D} 3.5 (E) 33 LT Course 2 AW (9 y: A papcnflty-immadiate 9:13:51 per Brian mac-IVE the first :1 paymems, Cullezq mceives lhr: next :1 payments, and Jefi'recvas the. mnaining puma. Bn'nn'a'share uf‘the pram: value. ufthe original perpetuity ii 40%, and Jeff‘s share is K . cm cammx. Em X4 “X X’DHCL + 1):“ I {A} 24% .fl— am+ X {B} 33% (C) 32% )ng'q : $.de 35% l LP “a _ H “53 40% LL -. Jr; z") 2): 4 (Mg; M HQUUQ EM 9 L. 17. Calmflatel. G) A: an mutual efl’eerive interest rate ef E. E 3» 0%, the present value of a perpenfity paying 11'] at the end ut‘eeeh 3~yeer period, with Lhe first payment atthe enel ufymr 6.15 32 . A: the same annual efi'eeeiVe rete er', the prment value ufe fierpetuitynimmediatepeylhg J at the end elf eeeh 4—month period is X . CF59: <§L> chl = ch 1:44: l 6333 chl 3 [U 1:451: 1,6100 (13) 3.9.3 ‘ mm = 12:,» {ct} 40.3 (D) 41.3 (E) _42.e Crmnw: _" 33. Chuck needs tn purchase an inn in ID years. The Item ena‘m Eflfl today, but its price To finance the purchase, Chunk depnsiu 2|} into an nee-31m: at the heginnfi'lg of each year fur IS years. He depnsim an addifinnan at 1the beginning n‘f' years 4, 5, and 5 to meelhis gun]. The annual efl'eefive interest rate in 10% . :%.Q] 1 352 __ 3.3 . me W3 Mike bays :1 perpetuity-innnediate with varying, annual paymenls. Dnring the first 5 . years, the payment is constant and equal to It] . Beginning in year 15, the payments start to increase Fer year E- and all future years, the current year’s payment is K‘H. larger than the previous-year‘s payment; _ At an annual efieedve interest rate (£9193, the perpetuity has'a present value of [£5151] . CalenlsteK,giwnK<9.2. ‘ ' 0MP 0 CL (A) 4n l a (a) 4.2 + E leCHkl+ {(341%)} [. {C} 4.4 “ml Q‘L‘ti)‘ ' . a - at 1+6 = W (E) 4.3 . ( t+ k fluff, ql ?/ .3 a H _ F- a no ~— am :- {6.7-5 Chas-1f. gig n i _ P'v PM'I‘ ——Fv‘—_' ” Cam'se 2. November .2019! p g 42. "’ You are given an annuitynimmeoiate with 11 annual payments of 1GB and a final payment atthe end ol12 years. At an annual effective interest rate of 3.5%, the present value at time D of all payments is 1000. Calculate the final payment. (A) 145 to} 15s {D} 151 {E} 155 * Reprinted with permission from ACTEX Publications. 11:03:04 I x :17, in 4?. .Tim hegan saving money for his reiiremenl by making monthly deposits of 299 into a Fund earning 15%in1eresi compounded monthly. The firsl deposit oeom'red on January 1, 1935. Jim became unemployed and missed making deposits I59 through 72 . He then eoniinued making mornhl],r deposits of 299 . How much did Jim aeeoinulaie in his fund on December 31, 1999 ? {A} 93} (C) {D} {E} r- Lo. Co arse 2 4.9 May 2999 I ' 3|]. You are given too following table of interoat rates: @ Calonda: Year oE'Driginal Rates Invosnnont lnvofihnont‘foar Halos in% 111% “Elm ' 8.25 M I 8-?5 “HENRI Infill} . mi!- m Q? a. film] [Mill H m “ELIE - ~ - - r. A person dofiosiL-a [fill-ll on JanuaryI l, 1991'. Lol tho following be flio accumulated value L - of the Mil-[l on January:r 'l, 2000: P: under the imminent yea: mail-loo Q: under lho portfolio yield mofliod R: when: [ho balance is vdlhdrawn at tho and of may your and i5 reinvested al tho DEW money rate Dotormino the ranking DEF, Q, and R. (A) PPQH P: EWWC['G1§3Cl-fl3% CyofiQZLEHTO {B} Polio-Q I Q 1 (m CI-GEEDCt~aa¢3([.aggg: “120 (C) 9mg {i=- t m (WEE-m3 Quoam 5" mm - .2 [m RoflbP r. “:30 May MES 33 Course 2 r-. .. -"=' .1. E 1‘th I._- _ . . The following table shows. the annual efi'eefive intro-eat rates being eredited by an ' VBSHflfint ace:an ‘oy calendar year of investment. 'The inveeenent yea: method is app able for thefirst 3 years, afiel- whioh a portfolio rate is used: An inveeonent of 1GB is made at the beginning of years 1990, 1991, and [992 . The Data] amount of intereat aedited by the fimd during the year 1993 is eqn'aJ to 23.411} . Calculater. A E U “G; ' I Jflr—‘Z “"11 M (A) m iafi'o Loo GOO-OOH) mi, (.13) v.25 my 1cm CHTDQGSB 5* ~|o (e; ?.5o (:5) .. "3:75 Rafi?“ I [573 (ma) x Genet) 5 m . . H I ' 2. :- 195‘ka ...
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SOA #3 - 1.. Course EM Which of the- fnlinwing exprassions...

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