[Actuarial Science 2553A/B] - Final Exam Guide - Comprehensive Notes for the exam (41 pages long!)
29 Nov 2016
School
Department
Professor
Document Summary
A c t u a r i a l s c i e n c e 2 5 5 3 a / b. Chapter 1 the time value of money. In any financial transaction, there are two parties: Person a is called the lender or. Person b is called the borrower or. The debtor must pay back the original amount borrowed (at some point in the future) along with a fee charged for the use of the money, called interest. = a dollar amount of money representing a fee or service charge paid to the lender for the use of his/her money. S = accumulated or future value of p. In this chapter, we will study the various methods by which interest is calculated and paid. Consider a financial transaction in which an investor deposits in an account or fund (in this case, p = 1)
