Revision as of 01:06, 18 November 2023 by Admin (Created page with "'''Solution: A''' The accumulated value is <math>\quad a(t)=\exp \left[\int_0^t 0.03+0.005 r d r\right]=\exp \left[0.03 t+0.0025 t^2\right]</math>, The account balance is <math display = "block">100 a(2)+100 \frac{a(2)}{a(1)}=100(1.0725)+100 \frac{1.0725}{1.0330}=211.07.</math>. {{soacopyright | 2023 }}")
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Exercise


ABy Admin
Nov 18'23

Answer

Solution: A

The accumulated value is [math]\quad a(t)=\exp \left[\int_0^t 0.03+0.005 r d r\right]=\exp \left[0.03 t+0.0025 t^2\right][/math], The account balance is

[[math]]100 a(2)+100 \frac{a(2)}{a(1)}=100(1.0725)+100 \frac{1.0725}{1.0330}=211.07.[[/math]]

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

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