Chapter 2
Time Value of Money
Solutions to Problems
1.
(a)
5,000(1.05*1.06*1.07*1.08*1.08) = 6,945.39
(b)
Geometric Mean = ( 1.05*1.06*1.07*1.08*1.08 )1/5 =
(c)
The geometric mean is the average rate
CHAPTER 12
1
Solutions to Problems
1.(a)
According to TDS ratio
$250,000 * 0.4 = $100,000.
standards,
the
maximum
is:
According to GDS ratio
$250,000 * 0.3 = $75,000.
standards,
the
maximum
is:
(b)
At
CHAPTER 3
1
Solutions to Problems
1. Financial goal is $ 1,500,000.00 when he retires in 30 years
hence.
His current action plan:
PMT
N
I/Y
FV
-5,000
30
10%
$ 822,470
(a)
No, he will not achieve his g
CHAPTER 11
1
General Comments
This short chapter is quite easy for students since it contains
primarily descriptions and definitions of general insurance
terms. We often assign it as required reading
CHAPTER 13
1
Solutions to Problems 1-3,6,8,14
Note that for specific mortgage calculations we extend to 5
decimal places, since the differences can matter.
1.(a)
3-year mortgage (1 + .08/2)1/6 - 1 = 0
CHAPTER 10
1
General Comments
This chapter is more difficult than the previous material for
many students. It contains five major items:
1.
2.
3.
4.
5.
An introduction to the mortality tables that for
Joseph Borabo
Network Assignment Internet Scavenger
1. What are the three most network topologies (physical layout of network)?
2. Define the following network commands: ping, ipconfig. How can these