UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN
Actuarial Science Program
DEPARTMENT OF MATHEMATICS
Math 210
Theory of Interest
Prof. Rick Gorvett
Fall, 2011
Homework Assignment # 8 (max. points = 10)
Due at the beginning of class on Thursday, November 17, 201
Study Aid for Exam # 1, Math 210, Fall 2013
UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN
Actuarial Science Program
DEPARTMENT OF MATHEMATICS
Math 210
Theory of Interest
Prof. Rick Gorvett
Fall, 2008
Exam # 1 (17 Problems Max possible points = 40)
Thursday,
Financial Mathematics: Homework #4
Ana Nora Evans
September 12, 2011
Problem 1
Alice takes a 10% simple interest loan from Bob with a one year term. After n days Bob has some
financial trouble and he sells the loan to Katie. Since Katie is a nice and gene
Nathan Nguyen
Homework 10 Solutions
Homework 10, Problem 2 Solution
2.) Generex Inc makes a grant to a university of $1; 000; 000 an January 1, 2003. Starting on
January 1, 2005, semiannual payments will be made to a math scholarship fund. At 7%(2), how
l
University of Virginia - math1140: Financial Mathematics
Final
Fall 2011
7:00-10:00 pm, 8 Dec 2011
Honor Policy. For this exam, you must work alone. No resources may be used during the quiz. The only things you can use are this handout, your brain, a calc
Homework 10 - Solutions
Math 1140 Financial Mathematics
Collaboration Policy: You are encouraged to collaborate with your fellow students on this homework. You must turn in individual solutions and you are not allowed to use any written, typed,
or recorde
Financial Mathematics: Homework #7
Ana Nora Evans
October 13, 2011
Problem 1
Dilbert makes annual deposits of $5000 on the first day of each year for 20 years. If the effective
rate of interest is 7%, how much is in the account immediately after the last
University of Virginia - math1140: Financial Mathematics
Quiz 2
Fall 2011
9:00-9:20, 21 October 2011
Honor Policy. For this exam, you must work alone. No resources may be used during the quiz. The only things you can use are this handout, your brain, a ca
University of Virginia - math1140: Financial Mathematics
Fall 2011
Ordinary Annuities Practice ProblemsOctober 14, 2011
Some of these problems were created by Professor Jeff Holt for a previous version of this
class. Some of these problems are from the te
Bonus 2
October 31, 2011
1
Find interest rate for Sigmund
Using the formula of conversion from nominal discount rate convertible quarterly to nominal discount rate convertible yearly.
$1(1 + i)k = $1(1
d(m) m
)
m
Now plug in the nominal rate of 5.4(4)% c
Problem (Bonus 3)
Starting on his 25th birthday and continuing through his 60 th birthday,
Fred deposits $7,500 each year on his birthday into a retirement fund
earning an annual effective rate of 5%. Immediately after the last
deposit, the accumulated va
Financial Mathematics: Homework #5
Ana Nora Evans
September 25, 2011
Problem 10 on page 47
Find the coupon equivalence of a 12-week bank discount rate of 8%.
Answer:
The coupon equivalence is the interest rate of an equivalent simple interest loan, that i
Problem 6.
Joseph pays $100 per month into a savings account earning 5%(4), with the first deposit on May
1, 1999 and the last one August 1, 2003. The money sits until October 1, 2005 when Joseph takes
out his first semiannual retirement payment. Find the
Simple Interest
I = Pit
I = interest (Cost for the use of the borrowed
money)
P = principal (Amount of money borrowed)
i = interest rate (Percent of the principal that is
the basis for the interest for a given time period)
t = term (Length of the loan in
Homework 10 - Solutions
Math 1140 Financial Mathematics
Collaboration Policy: You are encouraged to collaborate with your fellow students on this homework. You must turn in individual solutions and you are not allowed to use any written, typed,
or recorde
University of Virginia - math1140: Financial Mathematics
Exam 1
Fall 2011
7:00-9:00 pm, 26 Sep 2011
Honor Policy. For this exam, you must work alone. No resources may be used during the quiz. The only things you can use are this handout, your brain, a cal
Homework 9 - Solutions
Math 1140 Financial Mathematics
Collaboration Policy: You are encouraged to collaborate with your fellow students on this homework. You must turn in individual solutions and you are not allowed to use any written, typed,
or recorded
Financial Mathematics: Homework #6
Ana Nora Evans
October 12, 2011
Problem 1
Solve the inequality 3x + 9 < 2x + 1.
Answer:
We learned a few inequality properties:
(P1) If a < b, then a + c < b + c. In other words, we can add or subtract from both
sides an
University of Virginia - math1140: Financial Mathematics
Exam 1
Fall 2011
7:00-9:00 pm, 26 Sep 2011
Honor Policy. For this exam, you must work alone. No resources may be used during the quiz. The only things you can use are this handout, your brain, a cal
Math 373
Quiz 1
Spring 2016
January 28, 2016
1. Kasey invests 10,000 in an account with an accumulation function of a(t ) 1 0.06t .
Alan invests X in an account earning compound interest at a rate of i .
During the 10th year, Kasey and Alan earn the same
Nathan Nguyen
Solution to Problem (Bonus 2)
Sigmund and Karl each borrowed an identical amount from Ludwig at a nominal rate of discount
of 5.4% convertible quarterly. Sigmund repays his loan by making payments of $2000 at the end
of each year for six yea
University of Virginia - math1140: Financial Mathematics
Fall 2011
Compound Interest Practice ProblemsOctober 20, 2011
Some of these problems were created by Professor Jeff Holt for a previous version of this
class. Some of these problems are from the tex
Problem (Bonus 3)
Starting on his 25th birthday and continuing through his 60th birthday,
Fred deposits $7,500 each year on his birthday into a retirement fund
earning an annual effective rate of 5%. Immediately after the last
deposit, the accumulated val
University of Virginia - math1140: Financial Mathematics
Exam 2
Fall 2011
7:00-9:00 pm, 2 Nov 2011
Honor Policy. For this exam, you must work alone. No resources may be used during the quiz. The only things you can use are this handout, your brain, a calc
University of Virginia - math1140: Financial Mathematics
Exam 2
Fall 2011
7:00-9:00 pm, 2 Nov 2011
Honor Policy. For this exam, you must work alone. No resources may be used during the quiz. The only things you can use are this handout, your brain, a calc
University of Virginia - math1140: Financial Mathematics
Exam 1
Fall 2011
7:00-9:00 pm, 26 Sep 2011
Honor Policy. For this exam, you must work alone. No resources may be used during the quiz. The only things you can use are this handout, your brain, a cal
University of Virginia - math1140: Financial Mathematics
Exam 2
Fall 2011
7:00-9:00 pm, 2 Nov 2011
Honor Policy. For this exam, you must work alone. No resources may be used during the quiz. The only things you can use are this handout, your brain, a calc
Homework 8 - Solutions
Math 1140 Financial Mathematics
Collaboration Policy: You are encouraged to collaborate with your fellow students on this homework. You must turn in individual solutions and you are not allowed to use any written, typed,
or recorded
University of Virginia - math1140: Financial Mathematics
Fall 2011
Exam #1 Practice Problems
September 18, 2011
Some of these problems were created by Professor Jeff Holt for a previous version of this
class. Some of these problems are from the textbook.
Financial Mathematics: Homework #3
Ana Nora Evans
September 8, 2011
Problem 1(Exercise 26, page 13)
On 5 February 2008 Pierce has $10, 000 in savings. The next date that interest is posted (added) to
his account is 1 June 2008. If Pierce withdraws his mon
Exam FM Solutions Set 4
1. Answer: A
2. Answer: D
3. Answer: E
4. Answer: B
5. Answer: B
Exam FM Solutions Set 4
6. Answer: B
7. Answer: D
8. Answer: E
9. Answer: A
10. Answer: B
Exam FM Solutions Set 4
11. Answer: C
12. Answer: E
13. Answer: B
14. Answer
FM Sample Questions Set 3
1.
A perpetuity costs 77.1 and makes annual payments at the end of the year. The
perpetuity pays 1 at the end of year 2, 2 at the end of year 3, , n at the end of year
(n+1). After year (n+1), the payments remain constant at n. T
FM Sample Questions Set 5
1.
A 10,000 par value 10-year bond with 8% annual coupons is bought at a premium to
yield an annual effective rate of 6%. Calculate the interest portion of the 7th coupon.
(A) 632
(B) 642
(C) 651
<SOA Sample Question 10 Bonds>
(D
FM Sample Solutions Set 3
1. Answer: C
2. Answer: B
3. Answer: C
4. Answer: A
5. Answer: B
6. Answer: C
7. Answer: C
8. Answer: D
9. Answer: D
10. Answer: B
11. Answer: D
12. Answer: D
13. Answer: A
14. Answer: E
15. Answer: D
Econ303
Homework Assignment 4
Solutions
1.
In the Solow growth model, a high saving rate leads to a large steady-state capital stock and a high level of
steady-state output. A low saving rate leads to a small steady-state capital stock and a low level of