Actuarial Science 2053 Test 1 - Practice 1
1.
A $12,000 short term loan was taken out on April 3, 2009 at a simple interest rate of 8%. Interest is to
be calculated using ordinary interest (Bankers rule). The amount repaid was $12,488.00. On what
date in

DEPT. OF STATISTICAL AND ACTUARIAL SCIENCES
Actuarial Science 2053
2012-13
Mid Term Test 1
Friday, October 26, 2012
2-hour multiple choice
Name:_
7:00 pm 9:00 pm
Student Number:_
INSTRUCTIONS
1. This is a 2-hour closed book examination.
2. There are 22 mu

Introduction to Actuarial Mathematics
Chapter 9 The Life Table
Introduction (section 9.1)
American Benjamin Franklin once said:
There is nothing certain in life except death
and taxes
However, it is equally true that for any
individual, there is nothing s

17.
18.
19.
Your first deposit is made November 8, 2002 and your final
You deposit $300 every 3months.
deposit is made Novelnber 8, 2010. If the de osits ear ' = 8%. how much do you have immediately
after the deposit on Novernber 8, 2010? i
(A) $12,713.

Mb W'MJM Wish W W. what loan should you ask for? (3 marks)
(I117: What Irate ofsunple Interest is the loan company actually Charging you? (2 marks)
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AS2053 W2014 Ch.7 lecturenotes
Ch. 7 Business Decisions & other topics
7.1 Net Present Value
7.2 Internal Rate of Return(IRR)
7.3 Capitalized Cost
7.4 Depreciation
1
AS2053 W2014 Ch.7 lecturenotes
7.1 Net Present Value(NPV)
NPV is one tool used to assess

Actuarial Science 2053 Test 1 - Formula Page
Simple Interest
S = P (1 + rt )
P = S (1 + rt )1
I = Prt = S P
Simple Discount
S = P (1 dt )1
P = S (1 dt )
D = Sdt = S P
Compound Interest
S = P (1+ i ) n
P = S(1+ i ) n
i = jm / m
Equivalent Rates
jm and jp a

13. An individual borrowed $10,000 nine months ago and WWII-me naonm ago and he
wishes to pay off this loan with a pay-uncut of$Xiroday_ You mgi'men jg: l d that the
practical method of crediting/charging interest is taxed- Domini-De $281
(A) $16,9

20. On a debt of$]0,000, interest is paid scumannually at j2 = l
0% and s xniannual deposits are made
into a sinking fund to retire the debt at the end years. fund earns interest atj12= 6%.
What is the semiannual expense of the debt?
2 /
(A) $2382.13 1370

Select and Ultimate Mortality Tables
(section 9.7)
The mortality rates, qx, of a group of insured
lives is lower than the mortality rates of the
general population
one reason for this is that to obtain a life
insurance policy, a person must prove that
he

Chapter 8 - Fixed Income Investments
Introduction (section 8.1)
Key Points
1. A fixed income security, FIS, (fixed
income investment) is an investment
where a lump sum of money is invested
and an income stream is returned
the cash flows of the income str

Types of Risk (sections 8.2 and 8.3)
The yield rate (market interest rate) on an
investment will depend on the risk
associated with the investment
For Example
Two different corporations may issue bonds
on the same day, with the same values of F,
C, n and

Life Tables (section 9.3)
A life table (or mortality table) summarizes
information about the probabilities of
surviving or dying
most life tables deal with human lives
however, you can create life tables for
plants, animals, mechanical parts, etc
Life t

Temporary Life Annuities (section 10.5)
(I) Temporary Life Annuity Due
An n-year temporary life annuity due is
issued to (x), and provides a payment of
$1 at the beginning of every year that (x)
is alive for a maximum of n-payments
payments end when eith

Refinancing A Loan The Amortization
Method (section 5.3)
It is common practice to refinance a longterm loan before it is fully paid back
For Example
1. Suppose in a mortgage, you are locked in
at a specific interest rate for 5-years
at the end of the 5-y

Chapter 5 Repaying a Debt
Amortization of a Debt (section 5.1)
Interest bearing loans are often paid back by
means of a series of equal payments at equal
time intervals
we say the loan is being amortized
It is useful to know how much of each loan
payment

DEPT. OF STATISTICAL AND ACTUARIAL SCIENCES
Actuarial Science 2053 - 2012-13 - Mid Term Test 1
Friday, October 25, 2013
7:00 pm 9:00 pm (2-hour multiple choice)
INSTRUCTIONS
1. This is a 2-hour closed book examination.
2. There are 22 multiple choice ques

Actuarial Science 2053 Practice Final 2
Covers Chapter 1 Intro to Actuarial Math
1. A fair standard die is rolled until a six appears. If X is the number of rolls that are necessary.
What is the probability that X 2?
(A) 12/36
(B)
11/36
(C)
7/36
(D)
6/36

Actuarial Science 2053 Practice Final 1
Chapter 1
Use the following values for the next TWO questions:
You are given a portion of a Mortality Table for Females
x
x
x
lx
lx
50
92,600
54
90,060
58
51
92,000
55
89,350
59
52
91,380
56
88,600
60
53
90,735
57
8

DEPT. OF STATISTICAL AND ACTUARIAL SCIENCES
Actuarial Science 2053
2012-13
Mid Term Test 2
Friday, February 28, 2014
7:00 pm 9:00 pm (2-hour multiple choice)
INSTRUCTIONS
1. This is a 2-hour closed book examination.
2. There are 22 multiple choice questio

DEPT. OF STATISTICAL AND ACTUARIAL SCIENCES
Actuarial Science 2053
2012-13
Mid Term Test 2
Friday, March 1, 2013
2-hour multiple choice
7:00 pm 9:00 pm
INSTRUCTIONS
1.
This is a 2-hour closed book examination.
2.
There are 22 multiple choice questions. 1

Actuarial Science 2053 Test 2 Formula Page
Annuities Certain
Ordinary Annuity
n
S = R s = R [ (1 + i ) 1 ]
n i
i
Bonds
P = Fr a + C (1+ i ) n
A = R a = R [ 1 (1 + i )
n i
i
n
]
Perpetuity: A = R / i
P = C + (Fr Ci) a
n i
n i
Price Between Interest Dates
P