this implies ex+1 = ex/px - 1
where px = 1/a..x - d
d = i / (1+i ) = 0.07235
At interest rate i: (i) ar-5.6 (ii) The actuarial present value of a 2-year certain and...
Each of the following situations is independent. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided.) Case Present Value Annuity Future Value Annual Interest Rate Number of Years A $150,000 ---- (i) 3% 7 B (ii) --- $150,000 4% 6 C (III) $3,000 ---- 2% 10 D ---- $4,000 (IV) 3% 20 Compute the missing amounts for (i) through (iv). (Round your answers to...
Question 2 (0.2 points) Which of the following will increase the present value of an annuity, all else held constant? I. Increase in the number of payments II. Decrease in the interest rate III. Increase in the interest rate IV. Decrease in the payment amount 1) I, III, and IV only 2) I, II, and IV only O3) II and IV only 4) I and III only 5) I and II only
The dividend growth model: I. cannot be used to value zero-growth stocks. II. cannot be used to compute a stock price at any point in time. III. requires the required return to be higher than the growth rate. IV. assumes that dividends increase by a constant amount forever. V. none of the above is correct Multiple Choice 0 II, and IV only 0 V only 0 1, I, II, and IV only 0 Ill only 0 In order to estimate...
Question 2 Which of the following will increase the present value of an annuity, all else held constant? 1. Increase in the number of payments II. Increase in the interest rate III. Decrease in the interest rate IV. Decrease in the payment amount o I and III only oland Il only o 1, 11, and IV only o 1. III. and IV only o I and IV only
Assume a 10% annual interest rate. (i) What is the present value of a 25 year, $900 annuity if the first payment does not occur until 7 years from today? (ii) What would be the present value of a perpetuity with the same characteristics ($900, first payment in 7 six years).
Holding other things constant, which of the following will increase the present value of an annuity? I. Increase in the number of payments II. Increase in the interest rate III. Decrease in the interest rate IV. Decrease in the payment amount Group of answer choices I, III, and IV only I and II only I and III only I, II, and IV only II and IV only
1. actuarial LTAM question You are given: (1) Hv = 0.02 for 0 sts 10. (i) 8 = 0.08 (iii) Y is the present value random variable for a 10-year temporary continuous life annuity due on (x). Find the probability that Y is less than 0.75E(Y). Select one: a. 0.05 b. 0.14 c. 0.08 d. 0.11 e. 0.17
13. Choose the Choose the option that correctly ranks the following investments from highest present value to lo All options have the same interest rate. ent value to lowest present value. 1. A perpetuity with an annual cash flow of $100. II. An annuity due with 10 annual payments of $100. III. An ordinary annuity with 10 annual payments of $100. A. B. C. D. E. II, I, III I, II, III I, III, 11 III, II, 1
An 8-year annuity due has a present value of $1,000. If the interest rate is 5 percent, what is the amount of each annuity payment?
insurance paying I at the moment of 3. The expected present value of an meyear term death to (r) is 0.0572. You are giv (i) Aa.,-0.007, , > 0. δ-0.05 (ii) Determine n 4. You are given: (i) Ar =0.4275 (ii) δ= 0.055 (İİİ) Ar.,-0.045 for all Calculate A r치 insurance paying I at the moment of 3. The expected present value of an meyear term death to (r) is 0.0572. You are giv (i) Aa.,-0.007, , > 0. δ-0.05...