Exam FM November 2005
1.
An insurance company earned a simple rate of interest of 8% over the last calendar year based on the following information:
Assets, beginning of year Sales revenue Net investment income Salaries paid Other expenses paid
25,000,000
COURSE 1 MAY 2001
1.
The price of an investment at the end of month n is modeled by pn = nebn where b is a constant. The model predicts that the price at the end of the sixth month is the same as the price at the end of the fifth month.
Determine b .
(A)
May 2003 - Course 1
1.
A survey of a group's viewing habits over the last year revealed the following information:
(i) (ii) (iii) (iv) (v) (vi) (vii)
28% watched gymnastics 29% watched baseball 19% watched soccer 14% watched gymnastics and baseball 12% wa
Course 1 Solutions November 2001 Exams
1.
A For i = 1, 2, let Ri = event that a red ball is drawn form urn i Bi = event that a blue ball is drawn from urn i . Then if x is the number of blue balls in urn 2, 0.44 = Pr[( R1 R2 ) ( B1 B2 )] = Pr[ R1 R2 ] + P
Interest rate is the amount charged by a lender to a borrower for the use of assets. An asset could be
cash, vehicles, buildings, etc. The interest is basically a rental charge to the borrower for the assets use.
For example, in the case of a large asset,