Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA/CAS Preliminary Exams > Exam 2/FM - Financial Mathematics
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

Registration Form
Be Notified

of New
Actuarial Jobs

D.W. Simpson
& Company

International
Actuarial
Recruiters

www.dwsimpson.com

Australia Jobs
Casualty, Life,
Superannuation,
Health &
Investment

Pension
Actuarial Jobs

Consulting &
Insurers --
Students,
Associates &

Fellows


Reply
 
Thread Tools Display Modes
  #1  
Old 03-07-2005, 01:38 PM
Epsilon Theta Epsilon Theta is offline
Member
 
Join Date: Oct 2001
Posts: 199
Default Calculating unknown interest rate

Are students supposed to use linear interpolation to calculate an unknown interest rate when the problem is not simple enough to use the financial calculator? I use the Excel Solver function in "real life". Linear interpolation can be time consuming.
Reply With Quote
  #2  
Old 03-07-2005, 01:53 PM
NewTubaBoy's Avatar
NewTubaBoy NewTubaBoy is offline
Member
CAS
 
Join Date: Jul 2004
Location: Boston
Studying for CAS 8
Favorite beer: Blue Moon
Posts: 1,391
Default

Can you give an example of an old exam question like that?
Reply With Quote
  #3  
Old 03-07-2005, 01:58 PM
wat?'s Avatar
wat? wat? is offline
Member
SOA
 
Join Date: May 2004
Location: Hi
Studying for Foundations of CFE
Posts: 30,557
Default

Quote:
Originally Posted by Epsilon Theta
Are students supposed to use linear interpolation to calculate an unknown interest rate when the problem is not simple enough to use the financial calculator? I use the Excel Solver function in "real life". Linear interpolation can be time consuming.
I suppose, if you really felt like it, and if a problem like that happened to appear on the exam, you could try to memorize the Newton-Rahpson formulas. I doubt they'll appear, though. In the past, the problems were designed so that the most complicated formula you'd need to remember to figure out i is the quadratic formula. Then again, it is the first FM, so...
__________________
"Mathematical Induction: How mathematicians manage to suck all the fun out of lining up a row of dominos, knocking the one on the end down, and watching the entire row fall." -BC
Skip it. - AG

Because everything should taste like bacon.
AO Golfers Unite! Here and here.
Reply With Quote
  #4  
Old 03-07-2005, 04:55 PM
Epsilon Theta Epsilon Theta is offline
Member
 
Join Date: Oct 2001
Posts: 199
Default

Quote:
Originally Posted by NewTubaBoy
Can you give an example of an old exam question like that?
Can't think of one. But after doing problems from Broverman, I thought about it. I'm hoping the SOA won't be so cruel.
Reply With Quote
  #5  
Old 03-09-2005, 01:23 PM
NewTubaBoy's Avatar
NewTubaBoy NewTubaBoy is offline
Member
CAS
 
Join Date: Jul 2004
Location: Boston
Studying for CAS 8
Favorite beer: Blue Moon
Posts: 1,391
Default

I'm pretty sure you won't have to do anything like that.
Reply With Quote
  #6  
Old 03-09-2005, 04:35 PM
Skowron's Avatar
Skowron Skowron is offline
SOA AAA
 
Join Date: Oct 2003
Location: INLAND EMPIRE
Studying for MLC
Favorite beer: Sierra Nevada Celebration Ale
Posts: 26
Default

From your mouth to god's ears, NewTubaBoy
Reply With Quote
  #7  
Old 03-14-2005, 03:40 PM
nicole nicole is offline
Member
 
Join Date: May 2004
Posts: 62
Cool try this

maybe you could try to substitute all 5 choices into the your final function to see which number yields the answer. sometimes this is a better way compared to calculate i directly.

Last edited by nicole; 03-14-2005 at 03:55 PM..
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 02:56 PM.


Powered by vBulletin®
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.27327 seconds with 7 queries