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Unformatted text preview: E” Which armsfollowing expressions due5 HGT rcprLScm 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 ef X. Which at" the Following represents the difference betsteen 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 rteWas] {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 ﬁrstn 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 deptaha lEIEI iatc an account at the hcgimihg cfcach 4year 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 Mme1D today and wishea re provide aupplemenlal retirement inaeme of Bﬂﬂﬂ al
111:: beginning at” each mnmh starting on his 65* birthday. StarlingIndex he makes menﬂIty tanninMinna of X tn :1 ﬁmd far 25 years. The fund earns a neminaI Tale of 3% ' cempnunded monthly. Each lﬂﬂﬂ will panwide 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 2131} 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 himcat 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 buye a pe'rpetlﬁtyirnrnedinte 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 DUEFEM? 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 Cour5'2 2, November .209} ﬂ t I You are given an annuityimmediate 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 seemred 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.
 Winter '09
 kong

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