SOA 3 blank set

SOA 3 blank set - E” Which arms-following expressions...

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Unformatted text preview: E” Which arms-following expressions due-5 HGT rcprL-Scm a definition for an '? l' (A) v" (H) {C} v+v1+...+v" [D] J“? -..[E} _J_E_ '5) xx CGHI’WQFJU ' Ma} lflflj f—‘N Ma}! 24343:? An estate previties a perpetuity,r with payments eth' at: the end efeaeh year. Seth, Susan, and Lori share the perpetuityr such that Seth reeei‘tres the payments at)? For the first :1 years and Susan receives the payments ei‘X Fer~the next In year; after which Lari receives all the remaining payments e-f X. Which at" the Following represents the difference bets-teen the present value eFSetlt's and Susan‘s payments using a eenstant rate ufinterest'? (A) XDIH—v'hm] (a) flea—Nam] an eat—ms (D1 rte-Was] {E} live: —v’"'a;|] £5 _ 12. Ta accumulaté Eflflfl at the and of 3;: years, deposits quS are made at the and of each of the first-n years and 195 Etthe 0nd pl" with of the lie.“ 2:: years. The annual efianfive rate of interns: Is i . ch am given [1 + i)“ = 1'] . Detarmine :' . (A) 1 1.25% {B} 11.3% {C} 11.25% (m 12.25% A (El) 13.25% (5" Course 2, Havaniber .203} g May was Kafljjrjm dept-aha lEIEI iatc an account at the hcgimihg cfcach 4-year pericd fcr 41] years. The accmml m‘edila interest at an annual effective interact rate cf i. The accmuulated ammml In flae account at the end cfdfl years is X, which is 5 times the accumulated menu: in due account at the end cflfl years. Calculate X. {A} 4595 {13) 54170 {C} 5445 . (D) 532a (E) 5195 fl Course 2 . 27'. A man Mme-1D today and wish-ea re provide aupplemenlal retirement inaeme of Bflflfl al 111:: beginning at” each mnmh starting on his 65* birthday. Starling-Index he makes menflIty tannin-Minna of X tn :1 fimd far 25 years. The fund earns a neminaI Tale of 3% ' cempnunded monthly. Each lflflfl will pan-wide for 9.65 of income at 1he beginning of each month starting on his 155* hirflidajr until the end nfhis life. Calculate X. {A} 32453 rm (B) 316.39 (C) 323.12 {D} 355.4: {E} 454155 F- Cauma 2, November 290'} g /_H. I ' ' I I . ' I h _____ m“ ' . _ 38. Chuck Hands [In pumhane _an item in [I] yuan. The item coals 213-1} mday, but ill: price _ ' inflates 4% per year. Tn finnnnn thn purchase, Chunk dennsils 2D intn an annmmt a: the beginning of each year for 45 yams. He. deposiln an addilinnnl I at the beginning of years 4, 51 and 5 to ment his goal. The annual eEEanlivn him-cat mm is 10% . Calculate 1' . L {A} 7.4 _ {1a} 19 {C} 3,4 {In 3.9 {E} 9.4 Crmrfire J 12. May 2on Which ol'lhe following are characteristics of'all perpetuities? I. The present value i5 equal to [be fire! payment divided by the annual effietiye inlerestrdte. lI. Paymenls eonlinue Forever. 111. Each payment is equal lo the interest earned on the principal. {A} I only {E} [I only I?) ll] onlyr (o) 1,11, and III {Bi The correct answer is not given by (A), (E), {C}; or {D}. 14. Ma}: man A perpetuity pejring 1 at Ihe beginning of each 45—month perindhee a preeerrl value nflfl . I A seeend perpeth paysXet the beginning every 2 yearn DelenfiineX. (A) 3.5 {B} 3.6 {C} 3.? {D} 3.3 (E) 3.9 - MELIng the same annual efi'eeljve interest rate, the m present values are equal. Hearse 2 ..I.I1:_ A pmpetuity—immediate pays Jr'per pear. Brian receives the first :1 payments, Culleert receives the next :1 paymente, and .Tefi'reeeitres me remeirfiug pEl‘EJ'I'flEIIIE. Bfien'e'ehtlre of the present value of the nrigfitaj perpetuity ie 2’3, and Jeff's. share is K . Calculate K . {A} 24% {E} “23% (C) 32% {e} 35% {E} 405:, t 17. .'1.L:'+'-IHJ.' Pd: an annual affectiw: interest rate afi. i 2- D'Vn. the present value an parperuity paying [El at the. end ofeach 3—yearpm'1‘od, with the first payment a1: U11: end affirm: 6., is 32. Atfl'm same annnal efl‘ectiv: rate of f, the present value ut'a. perpemitynimmcdiaxe paying lat thewdufaach Lmunmmfindisf. Calumatcx. {A} 33.3 (E) 39.3 (C) 40.3 {D} 41.3 (E) .423 Q 3H. @@ years, we payment in constant and equal to It] . Beginning in year 6, the payments smart 5. Mike buy-e a pe'rpetlfity-irnrnedinte with varying annual payments. During lite first 5 tn tneteeee. Fur year 5 and all future years, the current year's payment in K95 larger then the previ DUE-FEM? payment; _ At an annual efieen've interest rate of 9.2%, the perpetuity has a present value uf 1515B . Eeleulete K, given if r: 9.2 . {A} 4,!) [E] 42 [(3) 4.4 (D) 4.15 (E) 4'3 Cour-5'2 2, November .209} fl t I You are given an annuity-immediate with '11 annual payments ef1flfl and a final payment at the end 01'12 years. At an annual effective interest rate at 3.5%. the present yalue at time i] of all payments is 10m. Calculate the final payment. {A} 145 {El} 151 Ire} 155 C (a) 151 [E] 166 * Reprinted with permission from ACTEX Publications. C '1 Hi] Bifl4 \1/ C s. C Course 2 1 Jim began saving meme}.r for his retirement by making menthiy deposits of EDD into a fund esming 6% intetast compounded menlhiy. The first. deposit seem-red en January 1, 1935. Jim became unempieyed and missed making deposits tit} litmugh T2 . He then cmttinued making mnnli‘il‘y deposits of 2th} . How much did Jim accumulate in his Fund on December 3i, i999 ? (A) (B) (c:- (D:- {E} 53,5?1 53,?15 53,849 53,96fi 54.134 45‘ May 25:90 Jr‘s ' 30. May 2903 Yen are given the fellewing table sf Interest rates: Pertf'etie Rates ' in '34: A person deposits mm on January I, 199?. Let the following he the accumulated value efthe lflflfl en Lteuusrg,r 1l Zflflfl: P: Q: R: under the Investment year method _ I under the pertfelie yield melhed where the balance is withdrew at the end of every year and Is reinvested a: the new money rete Determine the ranking eI'P, Q, and R. {A} (E) (C) {D} {E} Pegefl Pefleg QePefl RePhg RegeP Can Crmra'e 2 Yaar uf Partfilfiu Rate An invesunmt of ma is. made. at the beginning 01" gm [991], 1991, and 1992 amuth nf interest credimd by the fund during the year 1993 in aqua] tn 23.40 ‘ Cnlmlm r. {A} Hill] (H) 7,25 (C) 15!] "155 {E} 3,00 The tntal ...
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This note was uploaded on 03/02/2012 for the course MATH 172 taught by Professor Kong during the Winter '09 term at UCLA.

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SOA 3 blank set - E” Which arms-following expressions...

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