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  #11  
Old 10-15-2018, 02:47 PM
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Originally Posted by Basso View Post
This is best asked in the FM section if you want an explanation of how to do it. Is that what you are asking, or do you have a different question?



Move the 50k one period just to get it out of the way (53,500)

Add together all of these:
Then get the PV of a 5 year annuity at payment X, at a rate of 7%.
Then you have the PV of a 10 year annuity at payment 2X with a rate of 4%, discounted 5 years at 7%
Then you have a 5 year annuity at payment 4X with a rate of 4% discounted 5 years at 4% and 5 years at 7%.

and set them equal to the 53,500. Do algebra and X = 2562 ish.
FYP; at least, that is how I read the problem regarding payment sizes.
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  #12  
Old 10-15-2018, 02:48 PM
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Idk I知 too dumb for this.
If this is really true, are you in the right profession?
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  #13  
Old 10-15-2018, 02:49 PM
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Do algebra and X = 2562 ish.
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  #14  
Old 10-15-2018, 02:50 PM
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Originally Posted by ShundayBloodyShunday View Post
If this is really true, are you in the right profession?
I知 not in the profession I知 only a student.
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  #15  
Old 10-15-2018, 02:51 PM
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Originally Posted by ShundayBloodyShunday View Post
FYP; at least, that is how I read the problem regarding payment sizes.
no, its 2.The first annuity gets you the first 5 payments of x.

The second annuity of 2x covers 10 years. That leaves 2x more over the last 5 years. The 2x from annuity 2 in the last five years plus the 2x from the final annuity gets you the 4x.

If I'd done the middle annuity as a 5 year annuity of 2x, then the final would be 4x., but I did it as 10. You get the same answer.
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  #16  
Old 10-15-2018, 02:57 PM
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I知 not in the profession I知 only a student.
People are only jokin cause you haven't moved this to the FM forum yet. You can figure it out it's waaay easier than passing exams.
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  #17  
Old 10-15-2018, 03:02 PM
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Moved.

Also, this is at the top of the General Actuarial Forum. Please read it, then read it again.

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General Actuarial Non-Specific Actuarial Topics - Before posting a thread, please browse over our other sections to see if there is a better fit, such as Careers - Employment, Actuarial Science Universities Forum or any of our other 100+ forums.
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  #18  
Old 10-15-2018, 04:07 PM
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Step 1: Make a time line.
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  #19  
Old 10-15-2018, 05:24 PM
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Originally Posted by Sullinator View Post
Idk I知 too dumb for this.
From another thread you started
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Originally Posted by Sullinator View Post
Someone told me that on the FM exam the questions on there are going to be like the questions in the ASM manual and theinfiniteactuary.com with the wording a bit different and the numbers are different, is this true? As long as you know and understand the questions from there you are prepared?
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If I recognize a problem I should be able to solve it since I致e done it before.
The current problem is an extremely common FM problem: They give you a payment pattern, including timing of payments. They give you the pattern of interest rates. They give you the PV of the payments (here, the loan amount). They ask you to solve for the payment amount. Here, the nonequal payments are a slight complication. The deferral until the first payment is a slight complication. The nonlevel interest rates are a slight complication. You値l see all of those in ASM, Adapt and TIA. Maybe youエll see them all in a single problem in those sources, maybe not. If you understand the material in ASM, Adapt and TIA, this should not be too difficult*. If you only remember specific questions you did before, you could find yourself stuck.

* Not that everyone who learns ADAPT, ASM and TIA reasonably well would get this question right. The main challenge, and itエs far from simple to overcome, for people who have studied from those sources, is to apply what they saw in those sources, not things that werenエt covered in problems in those sources.
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  #20  
Old 10-15-2018, 05:37 PM
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Quote:
Originally Posted by Basso View Post
no, its 2.The first annuity gets you the first 5 payments of x.

The second annuity of 2x covers 10 years. That leaves 2x more over the last 5 years. The 2x from annuity 2 in the last five years plus the 2x from the final annuity gets you the 4x.

If I'd done the middle annuity as a 5 year annuity of 2x, then the final would be 4x., but I did it as 10. You get the same answer.
I somehow overlooked the bolded in your initial presentation; and agree with what you originally wrote.

But agree that there could be different (and correct) ways of looking at the problem and getting the correct answer.
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