ACTSC221 Lecture 1: chap3solstudent_notes.pdf

• School: University of Waterloo
• Department: Actuarial Science
• Course: ACTSC221
• Professor: Peter Khaiter

Document Summary

= 6106. 22 + 2005. 12 = . 34: s = 8111. 34(1. 00375)36 = . 38, r = 80 000 s10|. 08. = . 36: value of the account two years after the last deposit. 1: shawn has his original investment () plus the accumulated value of the second account (which pays out i1 = ) which is i1 sn|i2, if i1 = i2 = j, then in total shawn has. 1 + j sn|j = 1 + j (1+j)n 1 j. = (1 + j)n: s = 1000s3|. 09(1. 11)4(1. 08)3 + 1000s4|. 11(1. 08)3 + 1000s3|. 08. = 6268. 81 + 5932. 90 + 3246. 40 = 448. 11 (1. 1)n 1. = 14. 2: at time of 25th deposit: At time of 26th deposit = 23 584. 53(1. 04) = 527. 91: accumulation factor = 1 + 1(1 + i) + 1(1 + 2i) + + 1[1 + (n 1)i] = n + [i + 2i + 3i + + (n 1)i] = n + i[1 + 2 + 3 + + (n 1)]