Revision as of 22:02, 19 November 2023 by Admin (Created page with "'''Solution: A''' <math display = "block"> \begin{aligned} & P_A=45 a_{\overline{30} \mid 0.04}+1200 v^{30} \\ & P_A=1108.85 \\ & 1108.85=20 a_{\overline{4n}|0.021}+1376.69 v^{4n} \end{aligned} </math> Using the BA II Plus: <math display = "block"> \begin{aligned} & \mathrm{PV}=1108.85 \\ & \mathrm{PMT}=20 \\ & \mathrm{FV}=1376.69 \\ & \mathrm{I} / \mathrm{Y}=2.1 \end{aligned} </math> Solve for <math>4 n</math> and get <math>4 n=48, n=12</math>. Or solve the equation...")
Exercise
ABy Admin
Nov 19'23
Answer
Solution: A
[[math]]
\begin{aligned}
& P_A=45 a_{\overline{30} \mid 0.04}+1200 v^{30} \\
& P_A=1108.85 \\
& 1108.85=20 a_{\overline{4n}|0.021}+1376.69 v^{4n}
\end{aligned}
[[/math]]
Using the BA II Plus:
[[math]]
\begin{aligned}
& \mathrm{PV}=1108.85 \\
& \mathrm{PMT}=20 \\
& \mathrm{FV}=1376.69 \\
& \mathrm{I} / \mathrm{Y}=2.1
\end{aligned}
[[/math]]
Solve for [math]4 n[/math] and get [math]4 n=48, n=12[/math]. Or solve the equation to get [math]v^{4 n}=0.36876[/math] and then solve for [math]n[/math].
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.