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Unformatted text preview: 1" ‘L.L I The parents efthree ehilelren, ages l, 3, and 6, wish to set up a trust fund that will pa}' .1"
le eaeh ehild upon attainment at" age IE, and Flu eaeh ehild upon attainment of age 2]. ' They will establish the trust l‘und' with a singleinvestment of Z. which of the fellewing ie Lhe EDITEC'l. equation efvalue ﬁar Z '? (a) 3[Jﬁ='“+}e1’] {c1 3th + YD?" +1."a Hm (e1 tX+r)———Vm+:;3+"” (E) Eh” +1.1” +v‘1]+j’[v2” + Wu] K”? G; : Cnume FM Namemﬂer Jﬂﬂf 28 24. David can receive one e1” ﬂle fuﬂouﬁng two payment streams:
{i} we at time a, 20s at time s, and see st_t_irne 21:
(ii) ﬁll] at time H} At an annual eﬂ‘eeljve internsst rate el~ f, the preemt “rallies ofﬂ'je two streams are equal.
Given v” = 0.15941, determine i . (A) 3.5%
(B)
(C)
(D) {E} 4_D%
4.5%
5.0% 5.5% Course 2. Halrem bar 2am 511.
(
l'ﬂ‘ 
May Elfin£33 Jeff deposits 11] into a Fund 15.1.13} and 2E! ﬁfteen years later; Inlml: is creditednt a nominal discount rate efd enmpﬂunded q‘ﬂﬂl‘tﬂrl)? fer the ﬁrst In greenj and at a nominal interest rate ef 6% enmpeunded eerniannually mereeﬁer. The nemrnulnled balmLee in ﬁle ﬁlnd at line end of 3!] years is lﬂﬂ. Calculate d. (A) 4.33%
{E} 4.43%
(a) 4.53%
(D) 4.63%
(E) 4.13% Courre 2 32. _
An investor pays Etﬂﬂﬂﬂﬂ'leday fer a 4—year invesirnent that returns cashflexes of $610, DUB at the end of each at years 3 end 4, The sash flows can be reinvested at 4.D% per ennum effective. If the rate of interest at which the inurestrnent is to be valued is 5.U°fp, what is the net present value of this investment today? {A} 1s_ss
is} see
is:  ass
in) 1393
{E} 2,529
1 1:03.104 Irrr 31. mat the year, the time—wcighmd rctum is 13%, and ﬂu: duﬂar—weiyted return is: Y. Calculate Y .
(A) —13'}+.
[E] —] {1%
{C} [1%
{D} 10%
(E) 25% Yam am given the following inﬂammation about an inveatmam account: Value humedialely r“. 27. An inveeter deposits 51'! in en inveeutLent moment an January 1 . The fellewing eu mmarizes Lhe activity 111 the account timing the year: ' Value Immediately
Date Before DEE i I: Dgguaﬁ March IS 40 ' 2}
June 1 ' 30  Eli]
October I [1'3 3'5 On June 30, the value eI'Lhe aeeeunt is 15151] . On December 31, Lhe value of the
want:th is. I. Using Lhe timewweighted muthﬂd, the equivalent mutual effeetive yield
during [he ﬁrst 15 munlhe is equal tn the {timeweighted] annual elIeelive yield during Ute entire 1year period. Celeulate X. 234.?3
[E] 3.3 5.50
{C} 236.25
(D) 231130 {E} 23133 ."~’t.11=ember_'.‘rlr?f} Came"e 3 2}. Yuu ere ﬁven the fellewing infennelien about the activity 1n two dilferenl'iueeenuent eeeu u'nts: Fund 1Jelue
befm‘e aetivi . Jenan 11 1999_._____
Jul 1, 1999 Fund value
before aetivi Jenuaw 11 1999 11.11111 .1111 1, 1999 : 125.11 December 311 1999 .1 1115.3 During 1999, the duller weighted return For invesnneuteeeeum K equals IJ1e time weighted return for investment eeceunt L, which equals 1' . Calculate 1' .
(A) 119%
(13} 12%
(C) 15%
{D} 13%
{E} 213% Course 2. .ﬁ‘nvember 21919! 7 21' ‘ 11". An aaaeeiatien had a fund balance ef T5 en Jamar3r 1 and 60 on December 31. At the
end ef every'rnenth during the year, the aaseeiatien depeaiterl ll] Erern membership fees. There were withdrawals ef 5 en Febmary 23, 25 on June 31'}, 31'} en Ueteher 15, and 35 en Deteher 31. Calculate the dellarweighled rate ef return fer the year. (A) 9.0%
{a} 9.5%
(C) mm
(D) rem
(E) 11.0% Caurre 2 2H Fem [33A ...
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 Winter '09
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