Revision as of 10:13, 22 November 2023 by Admin (Created page with "'''Solution: C''' {| class="table" |- ! Feb 1 !! Aug 1 !! Dec 1 !! Feb 1 |- | 900 || 1600 || 1400 || 800 |- | || 1600 + D || 1000 || |} Time Weighted Rate of interest: <math display="block"> \begin{aligned} & {[1600 / 900] *[1400 /(1600+\mathrm{D})] *[800 / 1000]-1=.03} \\ & \quad \Rightarrow D=333.12 \end{aligned} </math> Dollar-Weighted: <math display="block"> \begin{aligned} & 900(1+\mathrm{i})+333.12(1+1 / 2 * \mathrm{i})-400(1+1 / 6 * \mathrm{i})=800 \\ &...")
Exercise
ABy Admin
Nov 22'23
Answer
Solution: C
| Feb 1 | Aug 1 | Dec 1 | Feb 1 |
|---|---|---|---|
| 900 | 1600 | 1400 | 800 |
| 1600 + D | 1000 |
Time Weighted Rate of interest:
[[math]]
\begin{aligned}
& {[1600 / 900] *[1400 /(1600+\mathrm{D})] *[800 / 1000]-1=.03} \\
& \quad \Rightarrow D=333.12
\end{aligned}
[[/math]]
Dollar-Weighted:
[[math]]
\begin{aligned}
& 900(1+\mathrm{i})+333.12(1+1 / 2 * \mathrm{i})-400(1+1 / 6 * \mathrm{i})=800 \\
& \Rightarrow 999.89^* \mathrm{i}=-33.12 \\
& \Rightarrow \mathrm{i}=-.033
\end{aligned}
[[/math]]
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.