

FlashChat  Actuarial Discussion  Preliminary Exams  CAS/SOA Exams  Cyberchat  Around the World  Suggestions 

Financial Mathematics Old FM Forum 

Thread Tools  Search this Thread  Display Modes 
#11




There's a quicker way to get the answer. Calculate the level payment that would have to be made at the end of every second year.
0 FV 5000 PV 10 N 18.147 I/Y CPT PMT Set this equal to X(1+i) + 2X. 
#12




Quote:
But what I don't get it in this method why the payment of 2009 (X) is moved to 2008 (PMT is assumed on even years) since it started in 2007. So, 2007 to 2008 is only 1 year but payment period is 2 years. So, shouldn't the first level payment be on 2009? If so, 2X payment earns (1+i) from 2008 to 2009 and then X is added on 2009, giving it 2X(1+i) + X = PMT Why is that not?
__________________

#13




I messed up. I thought they went X, 2X,..... and not 2X,X.....

#16




Q: A fund earning 8% effective is being accumulated with payments of 500 at the beginning of each year for 20 years. Find the maximum number of withdrawals of 1,000 which can be made at the end of each year under the
condition that once withdrawals start they must continue through the end of the 20year period. I solved the problem by letting the fund accumulate with payments of 500 for 20 years and then withdrawing from beginning of 20th period/end of 19th period. It gave me answer of 14 which is what's on the book. My question is what does they must continue through the end of the 20year period means? Does it mean the withdrawal has to start before the end of 20th period or the withdrawal has to start in such time so as the 14 withdrawals of 1000 must finish within the end of 20th period (hence starting at the beginning of 7th period max)? Or just withdrawals are allowed to go over 20th period and hence up to the end of 33rd period in my case?
__________________

#19




Given that δ(t) = 2/(10+t); t ≥ 0; find a4.
My approach: 1+i = e^δ(t) So, a4= v + v^2 + v^3 + v^4 = 1/e^(2/11) + 1/[e^(2/11*2/12)] + 1/[e^(2/11*2/12*2/13)] + 1/[e^(2/11*2/12*2/13*2/14)] But answer on the book : a4 = summation of(k=1 to 4) [10/(10+ k)]^2 Where did I go wrong?
__________________

#20




Quote:

Thread Tools  Search this Thread 
Display Modes  

