Soa exam fm qa - Study guides, Class notes & Summaries

SOA Exam FM Q&A Last document update:   ago

Value of $1.00 in a fund at a given time Given by accumulation function a(t) Note that a(0) = 1 Amount function: A_k(t) = k * a(t); represents value of investment of k dollars - Answer- Accumulated Value, Accumulation Function, Amount Function i_t = [A(t) - A(t - 1)]/A(t - 1) Note that A(t) = (1 + i_t)A(t - 1) and A(t) = k prod_{n = 1}^t (1 + i_n) - Answer- Effective Rate of Interest A(t) = k(1 + it) i_t = i/[1 + i(t - 1)] - Answer- Simple interest A(t) = k(1 + i)^t i_t = i - Ans...