Search for notes by fellow students, in your own course and all over the country.
Browse our notes for titles which look like what you need, you can preview any of the notes via a sample of the contents. After you're happy these are the notes you're after simply pop them into your shopping cart.
My Basket
(Oxford) Solutions for B5: General Relativity and Cosmology, 2011-2016£6.24
Or: Edit My Basket
Title: FINANCIAL MATHS
Description: These notes are comprehensively good for focused students. They are basically put in quiz form for practicing your class work, and basically for 2nd year students
Description: These notes are comprehensively good for focused students. They are basically put in quiz form for practicing your class work, and basically for 2nd year students
Document Preview
Extracts from the notes are below, to see the PDF you'll receive please use the links above
STA 2120 & STA 2191
W1-2-60-1-6
JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE AND TECHNOLOGY
UNIVERSITY EXAMINATIONS 2012/2013
SPECIAL/ SUPPLEMENTARY EXAMINATIONS FOR THE DEGREES OF
BACHELOR OF SCIENCE IN FINANCIAL ENGINEERING
&
BACHELOR OF SCIENCE IN ACTUARIAL SCIENCE
STA 2120: FOUNDATIONS OF FINANCIAL MATHEMATICS
STA 2191: FINANCIAL MATHEMATICS I
DATE: NOVEMBER 2012
TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
...
[2 marks]
(b) Define a nominal rate of interest
[1 mark]
(c) What is the “force of interest per unit time”?
[1 mark]
(d) The force of interest is
δ(t) =
0
...
1 − 0
...
[3 marks]
(e) Given that an = 7
...
934563, find the rate of interest i and n
...
The annuity is to commence in exactly 10 years at an initial rate of £12,000 per annum
...
The individual would like to
buy the annuity with a single premium 10 years from now
...
[6 marks]
(g) Bruce deposits 100 into a bank account
...
At the same time, Peter deposits 100 into a
separate account
...
After 7
...
Calculate δ
...
Another amount X is deposited in another account that earns interest at
2
an annual effective rate of discount d
...
Find d
[5 marks]
STA 2120 & STA 2191
W1-2-60-1-6
QUESTION TWO (20 MARKS)
(a) Under the terms of a savings scheme an investor who makes an initial investment of £4,000
may receive either
• £2,000 after 2 years and a further £3,000 after 7 years; or
• £4,400 at the end of 4 years
...
Any interest
earned is reinvested at 8%
...
[10 marks]
QUESTION THREE (20 MARKS)
(a) A bank accounts pays 6% simple interest
...
Sheldon also deposits $100, but Sheldon withdraws his accumulated value at the end of 1 year, and he then immediately returns the money to the
bank, depositing it in a new account
...
With the 10th payment, the
borrower pays an extra 1,000, and then repays the balance over 10 years with a revised
annual payment
...
Calculate the amount of the revised
annual payment
...
A
second deposit of $X is invested at time 8 years at the same interest rate
...
Calculate X
...
The first instalment
is 50, the second 48 and so on with the payments reducing by 2 per annum until the end
of the 15th year after which there are no further payments
...
i
...
[6 marks]
ii
...
[3 marks]
iii
...
[5 marks]
THE END
Title: FINANCIAL MATHS
Description: These notes are comprehensively good for focused students. They are basically put in quiz form for practicing your class work, and basically for 2nd year students
Description: These notes are comprehensively good for focused students. They are basically put in quiz form for practicing your class work, and basically for 2nd year students