Drill problem F.5b

Solution has a typo:  discounting by 5%, so the denominator is 1.05 (not 1.04).  All values are correct, however.

PV(Guar Ben) = [100000 x q60 v + 1p60 v x 75,000 A61 ]

= (100000 x 0.01618 /1.05 + (1 – .01618)/1.05 x 75 x 468.77]

= 34,482.76

Additional practice problems in US seminar

Canadian students:

Please note that you can access the US seminar using the link in “My Stuff.”  All of the additional drill problems that Jeremy and Anita posted from their live seminar are relevant to the Canadian exam with the exception of the section F problems. Be sure to check these out for additional practice.

Eddie

Section F drill problem #2 correction

Canadian exam only:

The cumulative NCPI in solution #2 in the Section F Drill Problems is incorrect.  The correct values for this solution are below:

Year

NAR

NCPI

Cum NCPI

ACB

1

99,950

199.90

199.90

400.10

2

99,900

299.70

499.60

700.40

3

99,500

398.00

897.60

902.40

4

99,000

495.00

1,392.60

1,007.40

New material posted–more problems

We have posted all of the handouts from the live seminar.  We also posted more problems (practice problems  + drill problems).

This includes:

Analysis of 8I exam questions

Practice problems (12) + More practice problems (5)

Drill problems–25 more

Examples from sections C, D, and F used during the seminar–this is basically another 3 sets of drill problems.  Especially useful for those of you who did not attend the live seminar

Hope your studying is going well.

Anita and Jeremy

Drill Problem C14, part a

There were some errors in the solution to problem 14 part a.

In the chart, PV#1 at hurdle rate, year 4, is 4.79 (not 4.29).  That was a typo.  All the answers used the 4.79 value.

When calculating the embedded value for product 2, all the calculations are correct.  However, in my explanation I typed 1.06 instead of 1.12.  Sorry.

Anita