Revision as of 00:06, 22 November 2023 by Admin (Created page with "'''Solution: B''' Rate of discount: 13% convertible every 4 years Find the equal rate of interest convertible monthly: <math display = "block"> \begin{gathered}(1-\mathrm{d} / \mathrm{n})^{-\mathrm{n}}=(1+\mathrm{i} / \mathrm{n}) \\ (1-.13 /(1 / 4))^{-1 / 4}=(1+\mathrm{i} / 12)^{12} \\ 1.2014=(1+\mathrm{i} / 12)^{12} \\ .185=\mathrm{i}\end{gathered} </math> {{cite web |url=https://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=1008&context=statsp |last=Hard...")
Exercise
ABy Admin
Nov 22'23
Answer
Solution: B
Rate of discount: 13% convertible every 4 years
Find the equal rate of interest convertible monthly:
[[math]]
\begin{gathered}(1-\mathrm{d} / \mathrm{n})^{-\mathrm{n}}=(1+\mathrm{i} / \mathrm{n}) \\ (1-.13 /(1 / 4))^{-1 / 4}=(1+\mathrm{i} / 12)^{12} \\ 1.2014=(1+\mathrm{i} / 12)^{12} \\ .185=\mathrm{i}\end{gathered}
[[/math]]
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.