Eric puts in a deposit where the bank credits him a rate of discount of 13% convertible every 4 years. Billy wants to find the same rate or better, but can only find banks that will give him rates of interest convertible monthly. What is the lowest rate of interest Billy will accept?

• .182
• .185
• .034
• .105
• .2014

Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.

Max and Tyler both make deposits of $30,000. Max’s bank credits his deposit with a simple interest rate of 10% annually. Tyler’s bank credits him with an annual compounded interest rate of 6%. At time t the forces of interest are equal.

Determine which person’s bank account has more money and by how much.

• Max: $5,532.52
• Tyler: $7.44
• Max: $5,946.14
• Tyler: $16,444.87
• Insufficient information to solve

Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.

Joel just won the lottery. He has two options to take the money. He can take the lump sum of $3,000,000 or he can take the level payments of $500,000 over 6 years. If he takes the lump sum, Joel will deposit the money into an account earning i% annually. If Joel takes the payment plan, he will deposit the payments at the end of each year at a compounded interest of 14%.

After 16 years, the accounts will be equal. Calculate i.

• .1095
• .0563
• .1065
• .371
• .022

Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.

A fund earns interest at a rate of 5% per annum effective. A person makes three deposits of $100 each to the fund, the first one three years from now, the second four years from now and the final one seven years form now. How much will be in the fund ten years from now?

• 300
• 345
• 390
• 450
• 490

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

Find the nominal rate of interest compounded monthly, equivalent to an effective rate of 42.95% per annum.

• 0.3627
• 0.381
• 0.395
• 0.4
• 0.4127

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

A man deposited $1000 into a savings account seven years ago. The account earns interest at 4% per annum effective. Today he withdraws half of the money in the accounts. In how many years from now will the remaining funds first exceed $1000 again?

• 10.7
• 11
• 11.25
• 11.7
• 12

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

For a certain fund the force of interest δ_t is a linear function of t such that δ₀ = 0 and δ₁ = ln(1.05). Three deposits of $1000 were are made on Jan 1, 2001 (time 0), Jan 1, 2003 and Jan 1, 2005.

What is the total accumulated value on Jan.1, 2006?

• 3875
• 4050
• 4525
• 4575
• 4755

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

Interest rate is i per annum. Begin with $100 in a bank account. The money accumulates for two years and then $50 is withdrawn. How many more years are needed for the amount in the account to accumulate to $200? (The answer should be a function of i.)

• [[math]] \frac{\log(2)}{\log(1+i)} -1.5[[/math]]
• [[math]]\frac{\ln (200)-\ln \left(100(1+i)^2-50\right)}{\ln (1+i)} [[/math]]
• [[math]]\frac{\ln (150)-\ln \left(100(1+i)^2\right)}{\ln (1+i)}[[/math]]
• [[math]](\frac{200}{50 + 200i}-1)/i[[/math]]
• [[math]]\frac{\ln(2)}{1+i}-2[[/math]]

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

What is the nominal discount rate convertible 3 times per year which is equivalent to a nominal interest rate of 6% convertible 6 times per year?

• 0.057
• 0.0591
• 0.06
• 0.062
• 0.067

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

Suppose you deposit $100 in a bank account at nominal annual rate of interest 6%, convertible quarterly, and six months later deposit $200. How big will your account be two years after your second deposit?

• 225
• 280
• 315
• 320
• 341

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.