Revision as of 22:04, 17 November 2023 by Admin (Created page with "'''Solution: C''' Equation of value at end of 30 years: <math display = "block"> \begin{array}{l}{{10(1-d/4)^{\frac{v0}{4}}(1.03)^{\frac{v0}{40}}+20(1.03)^{30}=100}}\\ {{10(1-d/4)^{-40}=[100-20(1.03)^{30}]/1.03^{40}=15.7738}}\\ {{d=4(1-0.98867)=0.0453 = 4.53\%.}} \end{array} </math> {{soacopyright | 2023 }}")
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Exercise


ABy Admin
Nov 17'23

Answer

Solution: C

Equation of value at end of 30 years:

[[math]] \begin{array}{l}{{10(1-d/4)^{\frac{v0}{4}}(1.03)^{\frac{v0}{40}}+20(1.03)^{30}=100}}\\ {{10(1-d/4)^{-40}=[100-20(1.03)^{30}]/1.03^{40}=15.7738}}\\ {{d=4(1-0.98867)=0.0453 = 4.53\%.}} \end{array} [[/math]]

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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