ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 2
Section 3. Force of interest, ination.
Section 4. Annuity-immediate and annuity-due.
Due: September 16, 2015
Sucient work must be shown to get credit for a correct answer. Partial credit may be given for
inc

ACTS 6308
Instructor: Yuly Koshevnik
SOLUTION TO HOMEWORK 5
Section 9: Amortization of a loan.
Section 10: The sinking fund method of loan repayment.
Problem 1
Suppose that a $16,000 loan for a new car is to be repaid by level payments at the end of each

ACTS 6308
Instructor: Yuly Koshevnik
SOLUTION TO HOMEWORK 3
Section 5: Annuity valuation at any time point.
Section 6: Annuities with differing interest and payment period.
Problem 1
Frank makes deposits of 200 into an account at the beginning of each yea

ACTS 6308
Instructor: Yuly Koshevnik
SOLUTION TO HOMEWORK 2
Section 3. Force of interest, inflation.
Section 4. Annuity-immediate and annuity-due.
Problem 1
You are given that A(t) = Kt2 + Lt + M , for 0 t 2, and that A(0) = 105, A(1) = 114, and
A(2) = 12

ACTS 6308
Instructor: Yuly Koshevnik
SOLUTION TO HOMEWORK 1
Section 1. Calculus review and effective rates of interest and discount.
Section 2. Nominal rates of interest and discount.
Problem 1
On September 27, Eric deposits 100 into a savings account whi

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 4
Section 7: Annuities whose payments follow a geometric progression.
Section 8: Annuities whose payments follow an arithmetic progression.
Due: October 17, 2016
Sufficient work must be shown to get credit for

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 5
Section 9: Amortization of a loan.
Section 10: The sinking fund method of loan repayment.
Due: October 31, 2016
Sufficient work must be shown to get credit for a correct answer. Partial credit may be given f

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 7
Section 13: Measures of the rate of return on a fund.
Section 14: The term structure of interest rates, forward rates of interest and duration.
Due: December 5, 2016
Sufficient work must be shown to get cred

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 6
Section 11: Bond valuation.
Section 12: Bond amortization, callable bonds.
Due: November 28, 2016
Sufficient work must be shown to get credit for a correct answer. Partial credit may be given for
incorrect a

ACTS 6308
Instructor: Yuly Koshevnik
SOLUTION TO HOMEWORK 2
Section 3. Force of interest, ination.
Section 4. Annuity-immediate and annuity-due.
Problem 1
You are given that A(t) = Kt2 + Lt + M , for 0 t 2, and that A(0) = 100, A(1) = 109, and
1
A(2) = 12

ACTS 6308
Instructor: Yuly Koshevnik
SOLUTION TO HOMEWORK 1
Section 1. Calculus review and eective rates of interest and discount.
Section 2. Nominal rates of interest and discount.
Problem 1
On September 27, Eric deposits 100 into a savings account which

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 7
Section 13: Measures of the rate of return on a fund.
Section 14: The term structure of interest rates, forward rates of interest and duration.
Due: November 2, 2015
Sucient work must be shown to get credit

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 8
Section 15: Introduction to nancial derivatives, forward and futures contracts.
Section 16: Introduction to options.
Due: December 7, 2015
Sucient work must be shown to get credit for a correct answer. Parti

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 5
Section 9: Amortization of a loan.
Section 10: The sinking fund method of loan repayment.
Due: October 21, 2015
Sucient work must be shown to get credit for a correct answer. Partial credit may be given for

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 6
Section 11: Bond valuation.
Section 12: Bond amortization, callable bonds.
Due: October 28, 2015
Sucient work must be shown to get credit for a correct answer. Partial credit may be given for
incorrect answe

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 4
Section 7: Annuities whose payments follow a geometric progression.
Section 8: Annuities whose payments follow an arithmetic progression.
Due: October 5, 2015
Sucient work must be shown to get credit for a c

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 3
Section 5: Annuity valuation at any time point.
Section 6: Annuities with diering interest and payment period.
Due: September 23, 2015
Sucient work must be shown to get credit for a correct answer. Partial c

ACTS 6308
Instructor: Yuly Koshevnik
HOMEWORK 1
Section 1. Calculus review and eective rates of interest and discount.
Section 2. Nominal rates of interest and discount.
Due: September 2, 2015 (Monday)
Su cient work must be shown to get credit for a corre

ACTS 4308
FORMULA SUMMARY
Section 1: Calculus review and effective rates of interest and discount.
1. Some useful finite and infinite series:
(i) sum of the first n positive integers:
1 + 2 + + n =
n(n + 1)
2
(ii) finite geometric series:
1 rk+1
r rk+1
;