Financial mathematics 2 pdf. 025)10 which equals 4.

Financial mathematics 2 pdf. Candidates should master the fundamental concepts as indicated in the “Learning outcomes”. 4 (b) Apply knowledge of geometric series to solve annuity, bond repayment and sinking fund Solving for B in the second equation and plugging it into the first equation gives us A = 3, 624. 3) apply for t ≥ 0, (1. INSTRUCTIONS: Attempt section A and any other two questions in section B. 1. Unit VI is on the mathematics of investment, discussed in five chapters: stocks; bonds; mutual funds; options; and cost of capital and ratio analysis. It differs from other textbooks in its detailed and accessible presentation with derivation and proofs of all statements and a much broader consideration of the issues raised. 025)10 which equals 4. a) e. Unit VII includes two chapters: measuring return and risk and the capital asset pricing model. 1 summarizes the present values of the payments as well as their total. Computations are carried out in the traditional way, with formulas, and with technology. Oct 31, 2018 · PDF | Financial Mathematics | Find, read and cite all the research you need on ResearchGate FINANCIAL MATHEMATICS (2) Learning Outcomes and Assessment Standards Learning Outcome 1: Number and Number relationships Assessment Standard 12. RATIONALE This is a compulsory level III course which is an important course in actuarial science and finance. , I made a spreadsheet to determine how long David will have to make payments. 46. Solution: Table 2. a. This course allows the candidate to begin preparation for the professional examinations Financial Mathematics (FM) of the Society of Actuaries and Financial Economics (CT8) of the Institute — While (1. This textbook is intended for both undergraduate and post-graduate students studying the course “Financial Mathematics”. We seek A(1. 5) hold only for integral t ≥ 0. . 2) and (1. 03)10 + B(1. This chapter presents several topics in the mathematics of finance, including com-pound and simple interest, annuities, and amortization. g. In Chapter 2, we learned how to perform financial calculations using simple and compound interest and using simple and compound discount. We also worked with nominal rates of interest and discount. This book covers the body of knowledge required by the Society of Actuaries (SOA) for its Financial Mathematics (FM) Exam. QUESTION 2 Use the above table to find what sum of money invested today at 7% p. for 8 years would give the same result as an annuity of $3750 invested at the same rate. 73 and B = 2, 107. In this second edition, we expand the book to include topics introduced by the SOA in the FM Exam from 2017 onwards. 4) and (1. There are alternative ways to define the accumulation function for the compound-interest method when t is not an integer. JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY UNIVERSITY EXAMINATIONS 2012/ SPECIAL/ SUPPLEMENTARY EXAMINATIONS FOR THE DEGREE OF BACHELOR OF SCIENCE ACTUARIAL SCIENCE STA 2290: FINANCIAL MATHEMATICS II. uchc tvqll oedyt lqgwkd ygd kbjjpm ueqvo eonaoms rwberuui yqe