ACTSC221 Lecture 1: chap4solstudent_notes.pdf

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

Document Summary

Part a: (1 + i)1 = (1. 015)4 i = (1. 015)4 1 = 0. 061363551. Accumulated value s = 200s5|i(1 + i) = . 86: (1 + i)12 = (1. 0125)4 i = (1. 0125)1/3 1 = 0. 004149425. Discounted value a = 15a240|i(1 + i) = . 27: (1 + i)4 = (1. 005)12 i = (1. 005)3 1 = 0. 015075125. Accumulated value s = 100s20|i = . 08: accumulated value s = 100s20|. 015 = . 37, (1 + i)4 = 1. 06 i = (1. 06)1/4 1 = 0. 014673846. Accumulated value s = 100s20|i = . 96: (1 + i)4 = e. 06 i = e. 015 1 = 0. 015113065. Accumulated value s = 100s20|i = . 94: (1 + i)1 = (1. 05)2 i = (1. 05)2 1 = 0. 1025. Discounted value a = 200a20|i(1 + i) 4 = . 07: (1 + i)12 = (1. 04)2 i = (1. 04)1/6 1 = 0. 006558197. Monthly payment = 8000/a60|i = . 71: (1 + i)12 = 1. 06 i = (1. 06)1/12 1 = 0. 004867551.