Interest theory questions(Ch5, 6)

[Andrew Chan]

Hi! I am new to this Forum and nice to meet all of you
But I do now have several questions about it...

(1) Regarding Chapter 5, Question 24(c),
Could anyone explain to me why we can't treat the deposit of D
as the contribution before 30, June, and so
i{TW} = [B/(A+D)] * (C/B)] - 1 = C/(A+D) - 1?

(2) Regrading Chapter 6, p184,
Could anyone tell me why the deposit D*S{8|0.02}/S{2|0.02},
but not S{8|0.02}/S{4|0.02}, equals to 2000?
By the way, could anyone understand how to derive S{8|0.02}/S{2|0.02} this?

(3) Regarding Chapter 6, p187,
For example 6.14, it said that "B{2}r(outstanding balance at the second
time,
in retrospective way) is the increased amount of the loan which must be
accumulated in the sinking fund." Then arrive at such conclusion:

B{2}r = (1000 - 0.12*B(2}r)*S{2|0.08}

I couldn't realize how it comes out, if anyone knows it, I appreciate
for anyone
who tells us, thank you!!


Regards,
Andrew

:viola:

[WQN]

You'll get more of a response on these types of questions if you join the list serve study group for Course 2 on the CAS website.

[Brutè]

Is there one of those for C3? If so, where is the site?

[WQN]

Go to www.casact.org and go to the student area. You can sign up for courses 1 - 4. You're on a list serve so you see everyone's questions and answers, you can post and respond.