SOA/CAS COURSE 2 - INTEREST THEORY - QUIZ 1
Measurement of Interest and Level Annuities
S. Broverman, 2003
1. An investor puts 100 into Fund X and 100 into Fund Y. Fund Y earns compound interest at the
annual rate of , and Fund X earns simple interest at
Mathematics Test
Time: 60 minutes for 60 questions
Directions: Each question has five answer choices. Choose the best answer for each question, and
then shade in the corresponding oval on your answer sheet.
1.
Jackson worked 25 hours and received
$225. At
Answer Key for Practice Test 2
1. D
41. A
2. J
22. K
42. F
3. A
23. C
43. B
4. H
24. H
44. F
5. D
25. B
45. A
6. G
26. H
46. J
7. C
27. E
47. C
8. G
28. G
48. J
9. D
29. A
49. A
10. H
30. H
50. G
11. D
31. A
51. D
12. J
32. G
52. G
13. A
33. C
53. B
14. J
Answer Key for Practice Test 1
1. D
41. D
2. H
22. K
42. H
3. D
23. C
43. B
4. F
24. J
44. J
5. E
25. D
45. A
6. F
26. J
46. K
7. B
27. E
47. E
8. J
28. K
48. J
9. B
29. E
49. C
10. J
30. F
50. J
11. C
31. A
51. C
12. H
32. K
52. F
13. C
33. D
53. D
14. H
Answer Key for Practice Test 3
1. D
41. D
2. G
22. J
42. J
3. D
23. E
43. A
4. H
24. G
44. F
5. D
25. A
45. B
6. K
26. G
46. H
7. A
27. B
47. C
8. G
28. K
48. J
9. D
29. A
49. C
10. H
30. H
50. H
11. B
31. D
51. E
12. K
32. F
52. F
13. A
33. C
53. C
14. F
Practice Test 1:
Answers and Explanations
C
ongratulations! Youve completed Practice Test 1! Youre now ready to check your
answers to see how you fared. In this chapter, I provide the answers, including
detailed explanations and a bare-bones answer key. T
ACT PRACTICE MATHEMATICS TEST
60 Minutes 60 Questions
1.
73 37 = ?
4 4 4 4 = 0 Correct answer is D) 0
The absolute value of a number is always positive.
2.
A consultant charges $45 for each hour she works on a consultation, plus a flat
$30 consulting fee.
Practice Test 2: Answers
and Explanations
S
o youve completed Practice Test 2? I bet you feel more prepared already. Use this
chapter to check your answers and find out just how prepared you are. In this chapter,
I provide detailed explanations along with
Mathematics Test
Time: 60 minutes for 60 questions
Directions: Each question has five answer choices. Choose the best answer for each question, and
then shade in the corresponding oval on your answer sheet.
1.
Which of the following numbers completes
the
Practice Test 3:
Answers and Explanations
Y
ouve likely come to this chapter because you just completed Practice Test 3 in
Chapter 17. I hope you fared well. To find out, spend some time with this chapter to
check your answers. I provide detailed explanat
MATHEMATlCS TEST .
60 Minutes—60 Questions
DIRECTIONS: Solve each problem, choose the correct but some of the problems may best be done without
anSWer, and then fill in the corresponding oval on your using acalcuiator. 'I
answer document Note: Unless ot
Mathematics Test
Time: 60 minutes for 60 questions
Directions: Each question has five answer choices. Choose the best answer for each question, and
then shade in the corresponding oval on your answer sheet.
1.
At a convenience store, two candy bars and
tw
ACT Test Study
Guide
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1
Table of Contents
ACT TEST RESOURCES. 4
READING. 5
STRATEGY 1: FLYING OVER THE PASSAGE . 5
STRATEGY 2: CREATING A TENTATIVE SUMMARY . 6
STRATEGY 3: OPENINGS AND ENDINGS . 7
STRATEG
SOA/CAS COURSE 2 - INTEREST THEORY - QUIZ 2
General Annuities and Fund Return Measurement
S. Broverman, 2003
1. A loan of amount 1000 is repaid with 12 annual payments of 100 each starting one year after the
loan is made. The annual effective interest rat
EXAM 2/FM SAMPLE QUESTIONS SOLUTIONS
The following model solutions are presented for educational purposes. Alternate methods of solution are, of
course, acceptable.
1.
Solution: C
Given the same principal invested for the same period of time yields the sa
NAME: (Last Name, First Name)
STUDENT NO:
University of Toronto at Mississauga ACT240 Test 2, November 21, 2004 Duration: 60 min
Instruction: You are allowed to use at most two nonprogrammable calculators. Please keep at least 6 decimals for all intermedi
10. A person's savings earn an effective armual rate of interest of 3%, but income tax at a rate of
55% must be paid on the interest earned. Find the maxiimun annual ination rate that will result
in a non-negative after-tax real [after ination) rate of re
3. Smith invests $1.000 in a 5-year "step-up" Guaranteed Investment Certicate (GlC). The GIC
will pay interest. compounded monthly, at the following nominal annual rates:
Year 1: 3.0% , Year 2: 4.0% , Year 3: 6.0% , Year 4: 9.0% . Year 5: 12.0%
(a) Find S
ACT240 Mathematics of Investment and Credit
Note: This course is for students working to enter actuarial science major or specialist
program. For other students interested in similar course material, please enroll in ACT230
Math of Finance for non-actuari
3. (SOA) Using an annual effective interest rate j > D, you are given:
(i) The present value of 2 at the end of each year for 210. years, plus an additional 1 at the end of
each ofthe first 71. years, is 36.
(ii) The present value of an n~year deferred an
NAME:
STUDENT NO:
University of Toronto at Mississauga
ACT240F Test 1, Tuesday, October 19, 2004
Duration: 60 min
Present your solutions in the space provided. Use the back of the pages if you need extra space.
Show all of your work. You are allowed to us
NAME:
STUDENT NO:
(Last Name, First Name)
University of Toronto at Mississauga
ACT240 Test 1, October 17, 2004
Solutions
Instruction:
Present your solutions in the space provided. Use the back of the pages if you need extra
space.
You are allowed to use
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Exam FM - May 2005
1.
Which of the following expressions does NOT represent a definition for an ?
(A)
(1 + i )n 1
v
i
(B)
1 vn
i
(C)
v + v2 + + vn
(D)
1 v n
v
1 v
(E)
Course FM
n
sn
(1 + i )
n 1
4
May 2005
2.
Lori borrows 10,000 for 10 years at an a
1
Introduction
Example 1.1 (PV Scheme) Smith borrows $100,000 from Davis at the beginning of the year and agrees
to repay the loan by 60 level monthly payments, staring one month after the loan is made. Suppose that
the interest rate of the loan is i(12)
SOA/CAS COURSE 2 - INTEREST THEORY - QUIZ 3
Loan Amortization, Sinking Funds, Bond Valuation,
Depreciation, Capitalized Cost and Short Sale
S. Broverman, 2003
1. John borrows 50,000 that is to be paid back over 10 years with level monthly payments at the
NAME:
STUDENT NO:
(Last Name, First Name)
University of Toronto at Mississauga
ACT240 Test 2, November 21, 2004
Duration: 60 min
Instruction:
You are allowed to use at most two nonprogrammable calculators.
Please keep at least 6 decimals for all interme