Revision as of 08:48, 18 November 2023 by Admin (Created page with "'''Solution: C''' The equation of value is <math display = "block"> \begin{align*} 98S_{\overline{{{3n}}}|}+98S_{\overline{{{2n}}}|}&=8000 \\ \frac{(1+i)^{3n}-1}{i}+\frac{(1+i)^{2n}-1}{i}&=81.63 \\ (1+i)^{n}&=2\\ \frac{8-1}{i}+\frac{4-1}{i} &= 81.63 \\ \frac{10}{i} &= 81.63 \\ i &= 12.25\% \end{align*} </math> {{soacopyright | 2023 }}")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)

Exercise


ABy Admin
Nov 18'23

Answer

Solution: C

The equation of value is

[[math]] \begin{align*} 98S_{\overline{{{3n}}}|}+98S_{\overline{{{2n}}}|}&=8000 \\ \frac{(1+i)^{3n}-1}{i}+\frac{(1+i)^{2n}-1}{i}&=81.63 \\ (1+i)^{n}&=2\\ \frac{8-1}{i}+\frac{4-1}{i} &= 81.63 \\ \frac{10}{i} &= 81.63 \\ i &= 12.25\% \end{align*} [[/math]]

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

00