Finance > EXAM > The City College of New York, CUNY<<<FINANCE AS1201 Financial & Investment Mathematics [CT1] (All)

The City College of New York, CUNY<<<FINANCE AS1201 Financial & Investment Mathematics [CT1]

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AS1201 Financial & Investment Mathematics [CT1] Part of Subject CT1 of the Institute and Faculty of Actuaries Examinations Important note for students regarding past exam papers Past exam papers ... are published for illustrative purposes only. They can be used as a study aid but do not provide a definitive guide to either the format of the next exam, the topics that will be examined or the style of questions that will be set. Students should not expect their own exam to be directly comparable with previous papers. Remember that a degree requires an amount of self-study, reading around topics, and lateral thinking – particularly at the higher level modules and for higher marks. Specific guidance for your exam will be given by the lecturer. Part 1 Examination 12th May 2014 18:00 – 21:00 Instructions to students: Candidates should answer ALL questions. The number of marks allocated is shown at the end of each question. Where marks have been quoted for parts of questions, these are intended to be a helpful guide to the candidates. This examination paper consists of 10 printed pages including the title page. Materials: Number of answer books to be provided: 1 BSc (Hons) Degree in Actuarial SciencePage 2 of 11 Only the Casio calculators FX-83 (MS, ES or GT+) or FX-85 (MS, ES or GT+) are permitted for use in this exam. Actuarial Tables. Dictionaries are not permitted. This examination paper may be removed from the examination room. External Examiner: Dr Paul King Internal Examiner: Prof Ben Rickayzen Question 1 The effective rate of interest is 6.2% per annum. Calculate: (i) the equivalent nominal rate of interest per annum convertible half-yearly. (ii) the equivalent nominal rate of interest per annum convertible monthly. (iii) the equivalent annual force of interest. (iv) the equivalent effective rate of discount per annum. [Total 4 marks] Question 2 The annual force of interest at time t , denoted by  t, is given by:   0.03 0.005 for 0 3 0.045 0.0025 for 3 8 0.025 for 8 t t t t t t               Calculate the present value at time 0 of a payment stream of amount  t e  1,000 0.025t per annum payable continuously between time 10 and time 15. [Total 6 marks] Page 3 of Page 11 [Show More]

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