Está en la página 1de 4

THE UNIVERSITY OF NEW SOUTH WALES

School of Risk and Actuarial Studies


Session 1 2014
ACTL2111: FINANCIAL MATHEMATICS FOR
ACTUARIES
QUIZ EXAM
INSTRUCTIONS TO CANDIDATES:
1. TIME ALLOWED1 hour
2. THIS EXAMINATION PAPER HAS 4 PAGES
3. TOTAL NUMBER OF QUESTIONS5
4. TOTAL MARKS AVAILABLE50
5. MARKS AVAILABLE FOR EACH QUESTION ARE SHOWN IN THE EXAMINATION PAPER . ALL QUESTIONS ARE NOT OF EQUAL VALUE.
6. ANSWER ALL QUESTIONS ON SEPARATE ANSWER SHEETS PROVIDED.
7. CANDIDATES MAY BRING
a. THE TEXT FORMUL AND TABLES FOR ACTUARIAL EXAMINATIONS
(ANY EDITION) INTO THE EXAMINATION. IT MUST BE WHOLLY
UNANNOTATED.
b. THEIR OWN CALCULATORS. ALL CALCULATORS MUST BE UNSW APPROVED.
8. ALL ANSWERS MUST BE WRITTEN IN INK. EXCEPT WHERE THEY ARE EXPRESSLY REQUIRED, PENCILS MAY BE USED ONLY FOR DRAWING, SKETCHING OR GRAPHICAL WORKS.
9. THIS PAPER MAY BE RETAINED BY THE CANDIDATE.

Question

Total Available Marks

[20 marks]

[5 marks]

[10 marks]

[5 marks]

[10 marks]

Total

50

Page 2 of 4

Total Marks Attained

1.

(a) Prove algebraically that

an + (I
a)n ,
k
an + (Ia)n1 = (k 1)

where k is an integer and n is the term of the annuity.

[5]

(b) A Company issues a 10 year annuity payable annually in arrear, with the following
features:
The first annuity payment is of $130, and subsequent annuity payments increase by 5% p.a. compound.
Each time the annuity is paid, the company incurs expenses as follows:
First year expense: 4% of the annuity amount, thereafter: 4% of the annuity
paid in the respective year, inflating at 4% p.a. compound.
Find the purchase price of the annuity at interest rate of 9.2% p.a. effective. [8]
(c) The force of interest is given by

0.08 + 0.0005t2 ,

(t) =
0.175 0.004t,

0.105,

0t<8
8 t < 14
t 14

Find a general expression for the accumulation factor a(0, t) from time 0 to time
t.

[7]

2. An insurance company offers a customer two payment options in respect of an invoice


for $760. The first option involves 24 payments of $33.33 paid at the beginning of each
month starting immediately. The second option involves 24 payments of 34.17 paid
at the end of each month starting immediately. The customer is willing to accept a
monthly payment schedule if the annual effective interest rate per annum he pays is
less than 5%.
Determine which, if any, of the payment options the customer will accept.

Page 3 of 4

[5]

3. An ordinary share pays annual dividends. The next dividend is due in exactly eight
months time. This dividend is expected to be $1.80 per share. Dividends are expected
to grow at a compound rate of 7% per annum from this level and are expected to
continue in perpetuity. Inflation is expected to be 2.5% per annum. The share price is
currently $35.
Calculate the expected effective annual real rate of return for an investor who purchases
the share.

[10]

4. An annuity certain with payments of $200 at the end of each fortnight is to be replaced by an annuity with the same term and present value, but with payments at the
beginning of each month instead.
Calculate the revised payments, assuming an annual force of interest of 8%.

[5]

5. A life insurance company offers an increasing term assurance that provides a benefit
payable at the end of the year of death of $12,000 in the first year, increasing by 150
on each policy anniversary. Calculate the single premium for a five year policy issued
to a life aged 50.
Basis:
Rate of interest 4% per annum
Mortality AM92

[10]

L99 End of Exam 99K

Page 4 of 4

También podría gustarte