Actuarial science | Page 3

> Suppose you can borrow money at an annual interest rate of $8 \\%$ but can save money at an annual interest rate of only $5\\%$. If you start with zero capital and if the yearly cash flows of... more

There was an interesting problem that I would like to have some input from people who knows a bit of finance.The following is the situation.>Smith loans $\\$10,000$ for $i=5\\%$ for $10$ years. ... more

There is a 1 percent that you will have healthcare bills of $100,000, a 19 percent chance that you will have a healthcare bill of $10,000, a 60 percent chance that you will have healthcare bills of... more

Gomez purchased a life insurance policy.  When he was 25 years old, he chose a $200,000, 10-year term policy at a price of $1.00 per $1.000, which at the age of 35 increased to $1.25 per $1.000. ... more

The owner of a grocery shop buys a policy to insure its revenue in the event of catastrophes (e.g. earthquakes, snowstorms etc.) that shut down the business.  The policy pays nothing for the first... more

https://gyazo.com/63d7e0ebf578afd27c4390f8a894c797   Above is a screenshot of the equation. Ignore the first line if you aren't familiar with finance.    How do you go from the 3rd line of the... more

A home selling for $620,000 is to be purchased with a 30% down payment and the remainder financed through mortgage with monthly payments over 25 years. Determine the monthly payment if rates for... more

Determine the accumulated value of monthly deposits of $770 each after 10 years if the deposits earn 9.9%/year compounded quarterly. Assume that the deposits are made at the end of each month and... more