MATHEMATICAL FORMULAS FOR CALCULATING NET RETURNS FROM PARTICIPATION IN GOVERNMENT PROGRAMS, CRP, AND CROP INSURANCE ALTERNATIVES

Size: px
Start display at page:

Download "MATHEMATICAL FORMULAS FOR CALCULATING NET RETURNS FROM PARTICIPATION IN GOVERNMENT PROGRAMS, CRP, AND CROP INSURANCE ALTERNATIVES"

Transcription

1 Disclaimer: This web page is desiged to aid farmers with their marketig ad risk maagemet decisios. The risk of loss i tradig futures, optios, forward cotracts, ad hedge-to-arrive ca be substatial ad o warraty is give or implied by the author or ay other party. Each farmer must cosider whether such marketig strategies are appropriate for his or her situatio. This web page does ot represet the views of Kasas State Uiversity. MATHEMATICAL FORMULAS FOR CALCULATING NET RETURNS FROM PARTICIPATION IN GOVERNMENT PROGRAMS, CRP, AND CROP INSURANCE ALTERNATIVES Dusti L. Pedell, William R. Perry, Jeffery R. Williams, G. Art Baraby, ad Bradley D. Lubbe August, 2003 Departmet of Agricultural Ecoomics Staff Paper No Cotributio No D from the Kasas Agricultural Experimet Statio, Kasas State Uiversity, Mahatta, KS The authors are Graduate research assistat, graduate research assistat, professor, professor, ad area extesio ecoomist, Departmet of Agricultural Ecoomics, Kasas State Uiversity, Mahatta, KS

2 INTRODUCTION The purpose of this report is to provide a revised versio of the publicatio, Mathematical Formulas for Calculatig Net Returs from Participatio i Govermet Commodity Programs icludig Marketig Loas (Williams ad Baraby, 994). The chage i desig of the govermet commodity programs ad developmet of several crop isurace alteratives has bee sigificat sice the previous paper was published. The formulas for calculatig et returs icorporate provisios from the Farm Security ad Rural Ivestmet Act of 2002 ad several crop isurace desigs developed i the 990s. Idividuals coductig research or educatio programs will be able to use this revisio for referece whe estimatig et returs for producers uder curret commodity program ad crop isurace pla provisios. The scearios that are provided i this report are:. No Commodity Program; 2. No Commodity Program with Crop Isurace a. Yield Isurace i. Multiple Peril Crop Isurace (MPCI) b. Replacemet Reveue Coverage i. Crop Reveue Coverage (CRC) ii. Reveue Assurace with Harvest Price Optio (RA-HPO) c. Reveue Isurace i. Icome Protectio (IP) ii. Reveue Assurace with Base Price Optio (RA-BPO) d. Idex Isurace

3 i. Group Risk Pla (GRP) ii. Group Risk Icome Protectio (GRIP) e. Catastrophic Coverage Isurace; 3. No Commodity Program with the Coservatio Reserve Program; 4. No Commodity Program with Crop Isurace, ad Coservatio Reserve Program; 5. Commodity Program oly; 6. Commodity Program with Crop Isurace a. Yield Isurace i. Multiple Peril Crop Isurace (MPCI) b. Replacemet Reveue Coverage i. Crop Reveue Coverage (CRC) ii. Reveue Assurace with Harvest Price Optio (RA-HPO) c. Reveue Isurace i. Icome Protectio (IP) ii. Reveue Assurace with Base Price Optio (RA-BPO) d. Idex Isurace i. Group Risk Pla (GRP) ii. Group Risk Icome Protectio (GRIP) e. Catastrophic Coverage Isurace (CAT); 7. Commodity Program with the Coservatio Reserve Program; 8. Commodity Program with Crop Isurace ad the Coservatio Reserve Program. 2

4 The equatios cotaied i this report ca be used to calculate et returs by couty for a sigle crop eterprise or a multicrop eterprise o a farm that may or may ot be erolled i or eligible for govermet programs. Calculatios ca be doe o a cash or total cost basis: total costs icludig the opportuity costs required to estimate et returs to maagemet; labor ad maagemet; or lad, labor, ad maagemet. Scearios -4 describe the estimatio of et returs whe the farm eterprises uder cosideratio are ot erolled i the govermet commodity program. Scearios 5-8 characterize the estimatio of et returs whe oe or more of the farm eterprises are erolled i the govermet commodity program. Attetio to the variable subscripts is particularly importat. Prices ad parameter values that pertai to the ad govermet programs ca be foud i Table 2. Some provisios may chage or be reiterpreted from time to time. Additioally, some iformatio is locatio specific, (i.e., crop isurace premium rates) or farm specific (i.e., program yields) ad, therefore, must be provided by the user. Before proceedig to the scearios, a discussio of isurace uits is appropriate. A uit is defied as acreage of a isured crop i a couty which is take ito cosideratio whe determiig the guaratee, premium, ad the amout of ay idemity paymet for that acreage (RMA, 2002). All acreage withi a couty for the same crop must be isured. Basic, optioal, eterprise, ad whole farm isurace uits are described as follows: a. Basic isurace uit- all isurable acreage of a isured crop i a couty o the date coverage begis for a crop (USDA, 2002). All owed ad cash reted crop acres are isured idepedetly as a basic uit. For each crop 3

5 share lease, growers qualify for a additioal idepedetly isured basic uit by crop. This uit is used for MCPI, RA-BPO, CRC, RA-HPO, ad CAT. b. Optioal isurace uit- if certai criteria are met, the basic uits ca be divided ito separate isurace uits (Edwards, 2003). This uit is used for MPCI, RA-BPO, CRC, ad RA-HPO. c. Eterprise isurace uit- all acreage of a particular eterprise i a couty are isured as a sigle uit (Edwards, 2003). This uit is used for IP, RA-BPO, CRC, ad RA-HPO. d. Whole farm isurace uit- all acreage of cor ad soybeas isured i a couty are covered uder oe isurace uit (Edwards, 2003). This uit is used for RA-BPO ad RA-HPO. Differet crops ca be isured with differet isurace products ad uit desigatios. A maager that produces a crop i more tha oe couty ca isure the same crop usig differet isurace plas as log as oe pla is applied to all uits of the crop i a sigle couty. The equatios i this report apply to a sigle couty although they could be easily used for multiple couties by addig a couty summatio idex. NONPARTICIPATION IN COMMODITY PROGRAMS The equatios i this sectio are used to estimate et returs whe a producer is ot erolled i the govermet program. Formulas estimatig et returs for oparticipatio alog with the use of crop isurace ad/or participatio i the coservatio reserve program are also icluded. Sceario. No Commodity Program The followig equatios ca be used to estimate et returs for producers that do ot use govermet commodity programs. Net returs are a fuctio of commodity 4

6 prices, yields, grazig values, ad cost of productio estimates. This sceario has o price protectio, yield protectio, or supplemetal icome. TNR = NR () where: c= c TNR = total et returs, NR c = et returs from crops ot erolled i a govermet commodity program. (( ) ) (2) NR = MP HY VC FC OSMC + OSGV PA c c c c c c c c c= c= where: c = crop c, ot erolled i a commodity program, MP c = market price ($ per uit), HY c = harvested yield (uits per plated acre), VC c = variable costs per plated acre, FC c = fixed costs per plated acre, OSMC c = off seaso maiteace cost per plated acre, OSGV c = off seaso grazig value per plated acre, PA c = plated acres. Sceario 2. No Commodity Program with Crop Isurace Crop isurace premiums are deducted from the gross icome because they are costs of productio. If a producer does collect a crop isurace idemity paymet, the it is added to gross icome. 5

7 Isurable yields are determied by each producer's actual productio history (APH). The APH yield is determied from producer productio records for a miimum of 4, up to 0 cosecutive crop years. For producers who provide less tha 4 years of actual yields, variable Trasitioal "T" Yields are used to complete the 4-year database. c c (3) c= c= TNR = NR + NRCI where: TNR = total et returs, NR c = et returs from crops ot erolled i a govermet commodity program (see equatio 2), NRCI c = et returs from crop isurace (see equatio 36). Sceario 2.a.i Multiple Peril Crop Isurace (MPCI) MPCI is the logest ruig crop isurace program. Some Uited States Departmet of Agriculture (USDA) literature refers to the MPCI product as the "APH" product. However, APH rules also apply to reveue isurace products. MPCI coverage provides protectio agaist low yields ad poor quality, as well as, preveted platig, late platig, ad replatig costs for most crops. Coverage is available at 50 to 75% i 5% icremets (i some areas up to 85%) of APH for the farm. A idemity price electio from 55 to 00% of the Risk Maagemet Agecy (RMA) expected market price (whe available o the crop) is selected at the time of purchase. If the harvest yield is less tha the yield isured, the farmer is paid a idemity based o the differece multiplied by the price electio selected by the farm maager. A maager must isure all acres of a crop i a couty whether or ot it is produced o owed or reted lad 6

8 icludig both irrigated ad drylad practices. Producers have two choices uder MPCI: ) Yield electio, ad 2) Idemity price. Yield Guaratee The yield guaratee is calculated by multiplyig the APH yield by a producerchose yield electio. Yield electios rage from 50 to 75% of APH yield ad 80 or 85% of APH yield is offered i selected locatios. Idemity paymets MPCI pays idemities whe actual yield falls below the yield guaratee. The paymet equals the yield shortfall times the idemity price. The farm maager chooses the idemity price at the time the isurace is purchased. The highest idemity price possible is the price determied by the USDA Risk Maagemet Agecy (RMA). The lowest price possible is 55% of the RMA price. For example if the RMA price for cor is $2.00, the the rage of idemity prices is $.0 (55% $2.00) ad the highest is $2.00 (00% $2.00). Net reveue for MPCI which ca be egative, zero or positive is calculated as follows: m ( {( ) } ) (4) NRMPCI = max YG HY, 0 INDP MPCIP PA c cu cu c cu cu c= c= u= where: c = crop c, isured with MPCI, u = isurace uit u NRMPCI c = et returs from isurace for crops with MPCI, 7

9 YG cu = yield guaratee (uits per acre) = APH cu YE c, (5) APH cu = actual productio history (uits per acre), YE c = yield electios rage from 50% to 85% i 5% icremets (USDA RMA, 2003), HY cu = harvested yield (uits per plated acre), INDP c = idemity price rages from 55% to 00% of RMA price (USDA RMA, 2003), MPCIP cu = MPCI premium ($ per acre), = INDP c CL c APH cu PR cu, (6) CL c = coverage level, PR cu = premium rate (set by RMA), PA cu = plated acres per isurace uit. Sceario 2.b.i Crop Reveue Coverage (CRC) CRC is reveue isurace that protects agaist low yields, low prices, or a combiatio of low yields ad low prices. CRC pays a idemity whe actual gross reveue falls below a reveue guaratee. A isurable yield loss is ot required for a CRC idemity paymet as it is with MPCI. Prices used to calculate reveue uder CRC are based o Chicago Board of Trade (CBOT) ad Kasas City Board of Trade (KCBOT) futures cotracts (Table ). Prices used to calculate the CRC sprig wheat price is based o the Mieapolis Grai Exchage (MGE) futures cotract. CRC's reveue guaratee icreases betwee platig ad harvest if the futures price rises. CRC ca be used to isure basic, optioal, ad eterprise isurace uits. 8

10 Reveue guaratee CRC's reveue guaratee equals the APH yield multiplied by the higher of the base price or harvest time price, by the coverage level. Base ad harvest time market prices are described below:. Base market prices are determied by averagig the CBOT, KCBOT, ad MGE futures cotract settlemet prices durig various moths. Base prices are released prior to the deadlie for purchasig crop isurace ad vary year to year. 2. Harvest time market prices are determied by averagig CBOT, KCBOT, ad MGE futures cotract settlemet prices. The oly exceptio is for white wheat cotracts i the Pacific Northwest. USDA determies this price. These prices reflect market coditios durig harvest. The producer selects the coverage level. The coverage level ca be betwee 50 ad 85% i 5% icremets of expected gross reveue i most regios of the coutry. The process of calculatig the reveue guaratee is a two-step process: ) Determiig the base guaratee ad 2) Updatig the base guaratee. Determiig the base guaratee Prior to the deadlie for sigig up for isurace, base market prices are used to calculate a "base reveue guaratee." This base reveue provides a reveue floor. The fial reveue guaratee will ever be below the base reveue guaratee. For cor isured with CRC, the average of the February settlemet prices at the CBOT of the December cotract is used. For soybeas, it is the February average of the CBOT November cotract. For wheat, the base price is calculated usig the August 5 to September 4 average settlemet price for July KCBOT hard red witer wheat futures cotract. For grai sorghum i Kasas, the base price is 95% of the cor CBOT futures cotract (i.e., 9

11 average of the February settlemet prices of the December cotract). These dates for calculatig prices apply to Kasas ad may other Midwester states. Alterate price measuremet dates ad futures exchages are used to reflect class of wheat, platig dates ad harvest dates i other states. Updatig the guaratee The base reveue guaratee will icrease if the harvest time market price based o futures prices is greater tha the base market price determied by the futures price before sig up. I these cases, the harvest time market price is used i calculatig the reveue guaratee. However, there are liability limits o harvest time market price icreases whe updatig base reveue guaratee. The liability limits o the harvest time market price differeces for a particular crop caot rage above or below the base market price by a pre-specified amout. For example, the harvest time market price for cor ad grai sorghum caot be $.50/bu. above or below the base market price. The limit amout is $2.00/bu. for wheat, ad $3.00/bu. for soybeas, ad $.70/lb. for cotto. The fial price used for the fial reveue guaratee will ever be below the base price. However, the harvest time price for isurace purposes may be below the base price. The harvest price is used to calculate the market reveue, which is subtracted from the reveue guaratee, but this price caot fall below the base price mius the liability limit eve if the actual harvest time market price is below the base price mius the limit. If prices rise the fial reveue guaratee price ca ever be above the base price plus the liability limit eve though the actual market price may be higher tha the base price plus the limit. This limits the amout of reveue liability to CRC because the fial reveue guaratee is limited. 0

12 Gross reveue Gross reveue is used to calculate idemity paymets. Gross reveue equals actual yield multiplied by the harvest price. I most cases, gross reveue does ot equal the reveue a producer receives for the crop. Prices used to calculate reveue uder CRC are based o CBOT futures cotracts. For cor isured with CRC, the average of the October settlemet prices of the December cotract is used. For soybeas, the value is the October average of the November cotract. States that have a cotract closig date before March 5 use earlier moths for settig base ad harvest prices o cor ad soybeas based o the September CBOT futures cotract. For wheat i Kasas, it is the Jue average of the Kasas City July cotract. These dates also apply to wheat grow i states located south of Kasas, while states located orth of Kasas use a later date for measurig harvest prices. Appropriate mothly wheat prices based o the MGE, CBOT, ad Portlad are used to set base ad harvest prices for other classes of wheat. CRC defies the grai sorghum harvest price as 95% of the cor CBOT futures cotract (i.e., average of the October settlemet prices of the December cotract). I most cases, cash prices at harvest time do ot equal futures prices. CRC ad the other isurace products, which will be discussed, do ot require sales of the crop at harvest-time. Prior to harvest, a producer may also forward cotract, hedge grai productio usig futures cotracts, or employ optios. A producer is also free to store grai for later sale. Net reveue for CRC is calculated i the followig equatio: m ( {( ) } ) (7) NRCRC = max RG GR, 0 CRCP PA c cu cu cu cu c= c= u=

13 where: c = crop c, isured with CRC, u = isurace uit u, NRCRC c = et returs from isurace for crops with CRC, RG cu = reveue guaratee ($ per acre) = APH cu max{bp c, IP c } CL c, (8) IP c = idemity price = max{mi(hp c, BP c + LL c ), max(bp c LL c, 0)} (9) APH cu = actual productio history (uits per acre), BP c = 95% or 00% of base market price from futures ($ per uit), HP c = 95% or 00% of harvest time market price from futures ($ per uit), LL c = liability limit ($/bu.), CL c = reveue coverage level rages from 50% to 85% i 5% icremets i most couties (USDA RMA, 2003), GR cu = gross reveue per acre = IP c HY cu, (0) HY cu = harvested yield (uits per plated acre), CRCP cu = CRC isurace premium ($ per acre) = BPP c CL c APH cu PR cu, () BPP c = base price for premium is 95 or 00% of BP b, PR cu = premium rate (set by RMA), PA cu = plated acres per isurace uit. 2

14 Sceario 2.b.ii Reveue Assurace with a Harvest Price Optio (RA-HPO) RA-HPO ad CRC are very similar isurace products. RA-HPO ca be used for a whole farm isurace uit i additio to the basic, optioal, ad eterprise uits. RA- HPO does ot have limits o the harvest time market price icrease or decrease. Some settlemet prices used to determie the harvest price for RA-HPO are determied differetly tha CRC. Harvest time market prices for RA for cor are the CBOT November average settlemet prices of the December cor cotract. Soybeas are the October average of the CBOT November cotract ad wheat i Kasas is the July to July 4 average of the KCBOT July cotract. Similar to CRC, appropriate price measuremets periods based o appropriate futures markets are used to set base ad harvest prices for RA isured crops i other states. RA-HPO for grai sorghum is ot available i Kasas. Base prices for cor are the February average settlemet prices of the December CBOT cotract, ad soybeas are the February average settlemet prices of the November CBOT futures cotract. Wheat is the August 5 to September 4 average price for "the ew crop" July KCBOT hard red witer wheat cotract. Like the harvest time market price, base prices for grai sorghum are ot available. RA ca be used to isure basic, optioal, eterprise, ad whole farm (combies cor ad soybea acres ito a sigle uit) isurace uits. Premiums may differ betwee CRC ad RA- HPO. Net reveue for RA-HPO is calculated i the followig equatio: m ( {( ) } ) (2) NRRAHP = max RG GR, 0 RAHPP PA c cu cu cu cu c= c= u= 3

15 where: c = crops, isured with RA-HPO, u = isurace uit u, NRRAHP c = et returs from isurace for crops with RA-HPO, RG cu = reveue guaratee ($ per acre) = APH cu max{bp c, HP c } CL c, (3) APH cu = actual productio history (uits per acre), BP c = base market price from futures ($ per uit), HP c = harvest time market price from futures ($ per uit), CL c = reveue coverage level rages from 65% to 85% i 5% icremets (Edwards, 2003c) i most couties, GR cu = gross reveue per acre = HP c HY cu, (4) HY cu = harvested yield (uits per plated acre), RAHPP cu = RA-HPO isurace premium ($ per acre) = BP c CL c APH cu PR cu, (5) PR cu = premium rate (approved by RMA), PA cu = plated acres per isurace uit. Sceario 2.c.i Icome Protectio (IP) IP is reveue isurace protectig agaist low prices, low yields, or a combiatio of low prices ad low yields. IP makes idemity paymets whe gross reveue falls below a reveue guaratee. 4

16 Reveue guaratee The reveue guaratee equals the APH yield multiplied by a base market price ad by the coverage level. The coverage level is selected by the producer ad rages from 50 to 75% i 5% icremets of expected gross reveue. Ulike CRC or RA-HPO, IP does ot have the optio of icreasig the base reveue guaratee if harvest time prices are higher tha the base market price. Like CRC, base market prices for cor are calculated usig average December CBOT futures cotracts durig the moth of February. For soybeas, the value is the February average of the November cotract ad for wheat the value is the average settlemet price for August 5 to September 4 o the July CBOT soft red witer wheat cotract. IP is ot available for grai sorghum i Kasas. Base market prices are released prior to the deadlie for purchasig crop isurace. These prices reflect estimates of futures prices at harvest-time. IP offers oly the eterprise isurace uit. Gross reveue Gross reveue is used to calculate idemity paymets. Gross reveue equals actual yield times the harvest time market price. The harvest time market price is based o CBOT futures cotracts. The harvest price for cor is the November average for December the CBOT cotract. For soybeas, the October average for the November CBOT futures cotract is used. For Kasas wheat, the harvest price is the Jue average closig prices for July Chicago soft red witer wheat futures cotract. I most cases, gross reveue does ot equal the reveue a farmer receives for the crop, because they may sell the crop for a differet price or use cotractig, hedgig, or optio methods which affect the fial price. Prices used to calculate reveue uder IP are also based o 5

17 CBOT futures cotracts. Usually, cash prices at harvest time are below futures prices. A producer is also free to store grai for later sale. Net reveue for IP is calculated i the followig equatio: ( {( ) } ) (6) NRIP = max RG GR, 0 IPP PA c c c c c c= c= where: c = crop c, isured with IP, NRIP c = et returs from crops with IP, RG c = reveue guaratee ($ per acre) = APH c BP c, CL c, (7) APH c = actual productio history (uits per acre), BP c = base price ($ per uit), CL c = commo reveue coverage level rage from 50% to 75% i 5% icremets (Edwards, 2003c), although 85% is offered i some regios, GR c = gross reveue per acre = HP c HY c, (8) HP c = harvest market price ($ per uit), HY c = harvested yield (uits per plated acre), IPP c = isurace premium ($ per acre) = BP c CL c APH c PR c, (9) PR c = premium rate (set by RMA), PA c = plated acres. 6

18 Sceario 2.c.ii Reveue Assurace with a Base Price Optio (RA-BPO) RA-BPO ad IP are very similar isurace products. However, ulike IP, which oly allows eterprise uits, RA-BPO allows basic, optioal, eterprise, ad whole-farm (combies cor ad soybea acres ito a sigle uit) isurace uits. RA-BPO has 80 ad 85% reveue coverage levels, where IP reveue coverage oly rages up to a 75% coverage level i Kasas. Premiums may differ betwee the two products. The base market price for cor is the February average of the CBOT December futures cotract uder RA-BPO. For soybeas, the February average of the CBOT November cotract is used. Wheat i Kasas is the August 5 to September 4 average price of July KCBOT hard red witer wheat futures cotract. For grai sorghum, RA- BPO is ot available. The RA-BPO harvest time market price for cor is the November average of the CBOT December futures cotract. The soybea value is the October average of the November CBOT cotract. Wheat is the July to July 4 average of the July KCBOT hard red witer wheat cotract. Net reveue for RA-BPO is calculated i the followig equatio: m ( {( ) } ) (20) NRRABP = max RG GR,0 RABPP PA c cu cu cu cu c= c= u= where: c = crop c, isured with RA-BPO, u = isurace uit u, NRRABP c = et returs from crops with RA-BPO, 7

19 RG cu = reveue guaratee ($ per acre) = APH cu BP c, CL c, (2) APH cu = actual productio history (uits per acre), BP c = base price ($ per uit), CL c = reveue coverage level 65% to 85% (Edwards, 2003c), GR cu = gross reveue per acre = HP c HY cu, (22) HP c = harvest market price ($ per uit), HY cu = harvested yield (uits per plated acre), RABPP cu = isurace premium per acre = BP c CL c APH cu PR cu, (23) PR cu = premium rate (set by isurace compay ad approved by RMA), PA cu = plated acres per isurace uit. Sceario 2.d.i Group Risk Pla (GRP) This policy uses a couty idex as the basis for determiig a loss. Whe the actual couty yield for the isured crop, as determied by the Natioal Agricultural Statistics Service (NASS), falls below the trigger yield, a idemity is paid. Paymets are ot based o the idividual producer s loss records, rather for the etire couty. Idemity paymet equals the percet yield shortfall times a protectio level. Producers have two choices uder GRP: ) Yield electio, ad 2) Protectio level. 8

20 Trigger yield Uder GRP, the trigger yield equals the expected couty yield times a producerchose coverage level (also called yield electio). Expected couty yields are based o the couty s historical average. Yield electio levels rages from 70 to 90% i 5% icremets of expected couty yield. Actual Couty Yield The actual couty yield is calculated by NASS. NASS releases couty yields by March i the year after the crop is harvested. Dollars of Protectio Uder GRP, the level of protectio is chose by the farm maager. The dollars of protectio is calculated by selectig the reveue coverage percet ad multiplyig it by the maximum dollar of protectio available for the crop ad practice. The liability coverage levels rage from 60 to 90% of the maximum dollars of protectio. The maximum protectio level is calculated by multiplyig the expected couty yield by the MPCI price ad 50%. Net reveue for GRP is calculated i the followig equatio: NRGRPc = { ( { max [ TYc ACY c,0 ]/ TYc} PLc) GRPP c PAc} (24) c= c= where: c = crop c, isured with GRP, NRGRP c = et returs from isurace for crops with GRP, 9

21 TY c = trigger yield (uits per acre) = ECY c YE c, (25) ECY c = expected couty yield (uits per acre), YE c = yield electio or coverage level rages from 70% to 90% i 5% icremets (Edwards, 2003c), ACY c = actual couty yield or paymet yield determied by NASS (uits per acre), PL c = dollars of protectio per acre = CL c maximum dollars of protectio per acre from actuarial documets = maximum dollars of protectio per acre = ECY c PMPCI c.5, (26) PMPCI c = MPCI price ($ per uit), CL c = coverage level rages from 60% to 00% (USDA RMA, 2003), GRPP c = isurace premium per acre, PA c = plated acres per couty. The calculatio, max (TYc ACY c,0) / TYc, i equatio 24 is the percet that the actual couty yield is below the trigger yield. Sceario 2.d.ii Group Risk Icome Protectio (GRIP) Like GRP, GRIP is a "low" cost group isurace program desiged to help protect the maager from losses. Uder GRIP, producers ca receive idemity paymets whe the actual couty reveue falls below the trigger reveue. The idemity paymet equals the percet reveue shortfall times a protectio level. Producers have two choices uder GRIP: ) Coverage level, ad 2) Protectio level. 20

22 Trigger reveue GRIP's trigger reveue equals the expected couty yield, times a expected market price, times a farm maager-chose coverage level. Like GRP, expected couty yields are based o historical yields for each couty as determied by NASS. The expected market price is based o the average futures prices for the last five tradig days prior to March. For cor ad soybeas the market is the CBOT. The farm maager ca choose a coverage level i a rage betwee 70 ad 90% of the trigger reveue i 5% icremets. Actual couty reveue Actual couty reveue is used i calculatig idemity paymets. Actual couty reveue equals actual couty yield multiplied by the harvest time market price. The actual couty yield is calculated by NASS. NASS releases couty yields by March i the year after the crop is harvested. The harvest time market price is based o CBOT futures cotracts for a particular moth durig harvest (i.e., cor is the average of the December futures cotract price durig November). Dollars of Protectio Like GRP, the dollars of protectio or liability isured uder GRIP is chose by the farm maager. The dollars of protectio is calculated by selectig the reveue coverage percet ad multiplyig it by the maximum dollar of protectio available for the crop ad practice. The reveue coverage levels rage from 60 to 90% of the maximum dollars of protectio. The protectio level is calculated by multiplyig the expected market price from futures, by the expected couty yield ad by 50%. 2

23 Net reveue for GRIP is calculated i the followig equatio: NRGRIPc = { ( { max [ TR c ACR c, 0 ]/ TR c} PLc) GRIPP c PAc} (27) c= c= where: c = crop c, isured with GRIP, NRGRIP c = et returs from crops with GRIP, TR c = trigger reveue = ECY c EP c TRE c, (28) ECY c = expected couty yield per acre, EP c = expected market price ($/bu.), TRE c = trigger reveue electio rages from 70% to 90% i 5% icremets (USDA RMA, 2003), ACR c = actual couty reveue ($ per acre) = ACY c HP c, (29) ACY c = actual couty yield or paymet yield per acre determied by NASS, HP c = harvest market price ($/bu.), PL c = dollars of protectio per acre = CL c maximum dollars of protectio per acre from actuarial documets = maximum dollars of protectio per acre = ECY c BP c.5, (30) BP c = base price from futures ($ per uit), CL c = coverage level rages from 60% to 00% (USDA RMA, 2003), GRIPP c = isurace premium per acre, 22

24 PA c = plated acres per couty. The calculatio, max (TR c ACR c,0) / TR c i equatio 27, is the percet that the actual couty reveue is below the trigger reveue. Sceario 2.e Catastrophic Coverage (CAT) CAT is miimum coverage yield isurace ad pays idemities whe actual yield is below a yield guaratee. CAT pays 55% of the established market price (set by RMA i Jauary for sprig plated crops) of the commodity o crop losses i excess of 50% of the APH (also called yield guaratee). The premium o CAT coverage is 00% subsidized by the RMA, however, producers must pay a admiistrative fee for each crop isured i each couty. CAT coverage is ot available for all crops. Basic isurace uits are used for CAT. If loss is i excess of 50% of the APH, the a idemity paymet will be made. Farm maagers may elect to take their CAT coverage uder IP or GRP i some locatios istead of the more commo CAT coverage based o APH. Net reveue for CAT is calculated i the followig equatio: m { ({ } ) } (3) NRCAT = max YG HY, 0 INDP PA P c cu cu c cu c c= c= u= where: c = crop c, isured with CAT, u = isurace uit u, NRCAT c = et returs from isurace for crops with CAT, YG cu = yield guaratee (uits per acre) 23

25 = APH cu YE c, (32) APH cu = actual productio history (uits per acre), YE c = yield electio (50%), HY cu = harvested yield (uits per plated acre), INDP c = idemity price (55% of RMA price, $/uit), PA cu = plated acres per isurace uit, P c = admiistrative fee. Sceario 3. No Commodity Program with the Coservatio Reserve Program The 2002 Farm Bill cotiues to iclude provisios that retire evirometally sesitive lad from crop productio. The 2002 Act emphasizes programs that support coservatio o lad i productio, icludig livestock operatios. This provisio, called the Comprehesive Coservatio Ehacemet Program (CCEP), is a revisio of the previous coservatio provisio of the Federal Agriculture Improvemet ad Reform Act (996 Farm Bill), which established the Coservatio Reserve Program (CRP). The CRP is a volutary program ecouragig producers to establish permaet grass, wildlife cover, or trees o highly erodible croplad through 0 to 5 year cotracts with the USDA. Although the CRP is ot targeted to provide protectio from yield or price variability, it ca have that effect because a guarateed retal paymet is received i retur for ot growig crops o the lad erolled i CRP. Plated acres are reduced for participats i the CRP. Acreage erolled i the previous CRP is cosidered erolled i the CCEP. The Commodity Credit Corporatio (CCC) makes aual paymets based o the agriculture retal value of the lad. The rates are based o the relative productivity of 24

Savings and Retirement Benefits

Savings and Retirement Benefits 60 Baltimore Couty Public Schools offers you several ways to begi savig moey through payroll deductios. Defied Beefit Pesio Pla Tax Sheltered Auities ad Custodial Accouts Defied Beefit Pesio Pla Did you

More information

Enhance Your Financial Legacy Variable Annuity Death Benefits from Pacific Life

Enhance Your Financial Legacy Variable Annuity Death Benefits from Pacific Life Ehace Your Fiacial Legacy Variable Auity Death Beefits from Pacific Life 7/15 20172-15B As You Pla for Retiremet, Protect Your Loved Oes A Pacific Life variable auity ca offer three death beefits that

More information

Enhance Your Financial Legacy Variable Annuities with Death Benefits from Pacific Life

Enhance Your Financial Legacy Variable Annuities with Death Benefits from Pacific Life Ehace Your Fiacial Legacy Variable Auities with Death Beefits from Pacific Life 9/15 20188-15C FOR CALIFORNIA As You Pla for Retiremet, Protect Your Loved Oes A Pacific Life variable auity ca offer three

More information

CHAPTER 3 THE TIME VALUE OF MONEY

CHAPTER 3 THE TIME VALUE OF MONEY CHAPTER 3 THE TIME VALUE OF MONEY OVERVIEW A dollar i the had today is worth more tha a dollar to be received i the future because, if you had it ow, you could ivest that dollar ad ear iterest. Of all

More information

A Guide to the Pricing Conventions of SFE Interest Rate Products

A Guide to the Pricing Conventions of SFE Interest Rate Products A Guide to the Pricig Covetios of SFE Iterest Rate Products SFE 30 Day Iterbak Cash Rate Futures Physical 90 Day Bak Bills SFE 90 Day Bak Bill Futures SFE 90 Day Bak Bill Futures Tick Value Calculatios

More information

*The most important feature of MRP as compared with ordinary inventory control analysis is its time phasing feature.

*The most important feature of MRP as compared with ordinary inventory control analysis is its time phasing feature. Itegrated Productio ad Ivetory Cotrol System MRP ad MRP II Framework of Maufacturig System Ivetory cotrol, productio schedulig, capacity plaig ad fiacial ad busiess decisios i a productio system are iterrelated.

More information

.04. This means $1000 is multiplied by 1.02 five times, once for each of the remaining sixmonth

.04. This means $1000 is multiplied by 1.02 five times, once for each of the remaining sixmonth Questio 1: What is a ordiary auity? Let s look at a ordiary auity that is certai ad simple. By this, we mea a auity over a fixed term whose paymet period matches the iterest coversio period. Additioally,

More information

I. Why is there a time value to money (TVM)?

I. Why is there a time value to money (TVM)? Itroductio to the Time Value of Moey Lecture Outlie I. Why is there the cocept of time value? II. Sigle cash flows over multiple periods III. Groups of cash flows IV. Warigs o doig time value calculatios

More information

INVESTMENT PERFORMANCE COUNCIL (IPC)

INVESTMENT PERFORMANCE COUNCIL (IPC) INVESTMENT PEFOMANCE COUNCIL (IPC) INVITATION TO COMMENT: Global Ivestmet Performace Stadards (GIPS ) Guidace Statemet o Calculatio Methodology The Associatio for Ivestmet Maagemet ad esearch (AIM) seeks

More information

where: T = number of years of cash flow in investment's life n = the year in which the cash flow X n i = IRR = the internal rate of return

where: T = number of years of cash flow in investment's life n = the year in which the cash flow X n i = IRR = the internal rate of return EVALUATING ALTERNATIVE CAPITAL INVESTMENT PROGRAMS By Ke D. Duft, Extesio Ecoomist I the March 98 issue of this publicatio we reviewed the procedure by which a capital ivestmet project was assessed. The

More information

INVESTMENT PERFORMANCE COUNCIL (IPC) Guidance Statement on Calculation Methodology

INVESTMENT PERFORMANCE COUNCIL (IPC) Guidance Statement on Calculation Methodology Adoptio Date: 4 March 2004 Effective Date: 1 Jue 2004 Retroactive Applicatio: No Public Commet Period: Aug Nov 2002 INVESTMENT PERFORMANCE COUNCIL (IPC) Preface Guidace Statemet o Calculatio Methodology

More information

Chapter 5 Unit 1. IET 350 Engineering Economics. Learning Objectives Chapter 5. Learning Objectives Unit 1. Annual Amount and Gradient Functions

Chapter 5 Unit 1. IET 350 Engineering Economics. Learning Objectives Chapter 5. Learning Objectives Unit 1. Annual Amount and Gradient Functions Chapter 5 Uit Aual Amout ad Gradiet Fuctios IET 350 Egieerig Ecoomics Learig Objectives Chapter 5 Upo completio of this chapter you should uderstad: Calculatig future values from aual amouts. Calculatig

More information

BENEFIT-COST ANALYSIS Financial and Economic Appraisal using Spreadsheets

BENEFIT-COST ANALYSIS Financial and Economic Appraisal using Spreadsheets BENEIT-CST ANALYSIS iacial ad Ecoomic Appraisal usig Spreadsheets Ch. 2: Ivestmet Appraisal - Priciples Harry Campbell & Richard Brow School of Ecoomics The Uiversity of Queeslad Review of basic cocepts

More information

5.4 Amortization. Question 1: How do you find the present value of an annuity? Question 2: How is a loan amortized?

5.4 Amortization. Question 1: How do you find the present value of an annuity? Question 2: How is a loan amortized? 5.4 Amortizatio Questio 1: How do you fid the preset value of a auity? Questio 2: How is a loa amortized? Questio 3: How do you make a amortizatio table? Oe of the most commo fiacial istrumets a perso

More information

For customers Key features of the Guaranteed Pension Annuity

For customers Key features of the Guaranteed Pension Annuity For customers Key features of the Guarateed Pesio Auity The Fiacial Coduct Authority is a fiacial services regulator. It requires us, Aego, to give you this importat iformatio to help you to decide whether

More information

DC College Savings Plan Helping Children Reach a Higher Potential

DC College Savings Plan Helping Children Reach a Higher Potential 529 DC College Savigs Pla Helpig Childre Reach a Higher Potetial reach Sposored by Govermet of the District of Columbia Office of the Mayor Office of the Chief Fiacial Officer Office of Fiace ad Treasury

More information

Two people, one policy. Affordable long-term care coverage for both.

Two people, one policy. Affordable long-term care coverage for both. Log-term care rider, available o Natiowide YourLife No-Lapse Guaratee SUL II Feature guide LIFE INSURANCE + LONG-ERM CARE wo people, oe policy. Affordable log-term care coverage for both. NAIONWIDE LIFE

More information

Amendments to employer debt Regulations

Amendments to employer debt Regulations March 2008 Pesios Legal Alert Amedmets to employer debt Regulatios The Govermet has at last issued Regulatios which will amed the law as to employer debts uder s75 Pesios Act 1995. The amedig Regulatios

More information

Health and dental coverage that begins when your group health benefits end

Health and dental coverage that begins when your group health benefits end Health ad detal coverage that begis whe your group health beefits ed Uderwritte by The Maufacturers Life Isurace Compay Page 1 of 5 FollowMeTM Health ca be your solutio. Life is full of chages. Some are

More information

Indexed Survivor Universal Life. Agent product guide 15887 7/10

Indexed Survivor Universal Life. Agent product guide 15887 7/10 Idexed Survivor Uiversal Life Aget product guide 15887 7/10 Idexed Survivor Uiversal Life is a flexible premium survivor uiversal life isurace policy with a idex-liked iterest creditig feature. Buildig

More information

How to use what you OWN to reduce what you OWE

How to use what you OWN to reduce what you OWE How to use what you OWN to reduce what you OWE Maulife Oe A Overview Most Caadias maage their fiaces by doig two thigs: 1. Depositig their icome ad other short-term assets ito chequig ad savigs accouts.

More information

Institute of Actuaries of India Subject CT1 Financial Mathematics

Institute of Actuaries of India Subject CT1 Financial Mathematics Istitute of Actuaries of Idia Subject CT1 Fiacial Mathematics For 2014 Examiatios Subject CT1 Fiacial Mathematics Core Techical Aim The aim of the Fiacial Mathematics subject is to provide a groudig i

More information

MainStay Funds IRA/SEP/Roth IRA Distribution Form

MainStay Funds IRA/SEP/Roth IRA Distribution Form MaiStay Fuds IRA/SEP/Roth IRA Distributio Form Do ot use for IRA Trasfers or SIMPLE IRA INSTRUCTIONS Before completig this form, please refer to the applicable Custodial Agreemet ad Disclosure Statemet

More information

RISK TRANSFER FOR DESIGN-BUILD TEAMS

RISK TRANSFER FOR DESIGN-BUILD TEAMS WILLIS CONSTRUCTION PRACTICE I-BEAM Jauary 2010 www.willis.com RISK TRANSFER FOR DESIGN-BUILD TEAMS Desig-builD work is icreasig each quarter. cosequetly, we are fieldig more iquiries from cliets regardig

More information

TIAA-CREF Wealth Management. Personalized, objective financial advice for every stage of life

TIAA-CREF Wealth Management. Personalized, objective financial advice for every stage of life TIAA-CREF Wealth Maagemet Persoalized, objective fiacial advice for every stage of life A persoalized team approach for a trusted lifelog relatioship No matter who you are, you ca t be a expert i all aspects

More information

Preserving Your Financial Legacy with Life Insurance Premium Financing.

Preserving Your Financial Legacy with Life Insurance Premium Financing. Preservig Your Fiacial Legacy with Life Isurace Premium Fiacig. Prepared by: Keeth M. Fujita, Natioal Director, The Private Bak Specialty Fiace Group Life Isurace Premium Fiace. James Mosrie, Seior Wealth

More information

France caters to innovative companies and offers the best research tax credit in Europe

France caters to innovative companies and offers the best research tax credit in Europe 1/5 The Frech Govermet has three objectives : > improve Frace s fiscal competitiveess > cosolidate R&D activities > make Frace a attractive coutry for iovatio Tax icetives have become a key elemet of public

More information

Your organization has a Class B IP address of 166.144.0.0 Before you implement subnetting, the Network ID and Host ID are divided as follows:

Your organization has a Class B IP address of 166.144.0.0 Before you implement subnetting, the Network ID and Host ID are divided as follows: Subettig Subettig is used to subdivide a sigle class of etwork i to multiple smaller etworks. Example: Your orgaizatio has a Class B IP address of 166.144.0.0 Before you implemet subettig, the Network

More information

PENSION ANNUITY. Policy Conditions Document reference: PPAS1(7) This is an important document. Please keep it in a safe place.

PENSION ANNUITY. Policy Conditions Document reference: PPAS1(7) This is an important document. Please keep it in a safe place. PENSION ANNUITY Policy Coditios Documet referece: PPAS1(7) This is a importat documet. Please keep it i a safe place. Pesio Auity Policy Coditios Welcome to LV=, ad thak you for choosig our Pesio Auity.

More information

Life & Disability Insurance. For COSE Employer Groups with 10+ Employees

Life & Disability Insurance. For COSE Employer Groups with 10+ Employees Life & Disability Isurace For COSE Employer Groups with 10+ Employees Life ad Disability Isurace Offerig a great beefit like life ad disability isurace is a excellet way to help attract ad retai taleted

More information

Engineering Data Management

Engineering Data Management BaaERP 5.0c Maufacturig Egieerig Data Maagemet Module Procedure UP128A US Documetiformatio Documet Documet code : UP128A US Documet group : User Documetatio Documet title : Egieerig Data Maagemet Applicatio/Package

More information

Statement of cash flows

Statement of cash flows 6 Statemet of cash flows this chapter covers... I this chapter we study the statemet of cash flows, which liks profit from the statemet of profit or loss ad other comprehesive icome with chages i assets

More information

Learning objectives. Duc K. Nguyen - Corporate Finance 21/10/2014

Learning objectives. Duc K. Nguyen - Corporate Finance 21/10/2014 1 Lecture 3 Time Value of Moey ad Project Valuatio The timelie Three rules of time travels NPV of a stream of cash flows Perpetuities, auities ad other special cases Learig objectives 2 Uderstad the time-value

More information

Life Insurance: Your Blueprint for Wealth Transfer Planning. Producer Guide to Private Split Dollar Arrangements. Your future. Made easier.

Life Insurance: Your Blueprint for Wealth Transfer Planning. Producer Guide to Private Split Dollar Arrangements. Your future. Made easier. Life Isurace: Your Blueprit for Wealth Trasfer Plaig Producer Guide to Private Split Dollar Arragemets These materials are ot iteded to be used to avoid tax pealties ad were prepared to support the promotio

More information

How to read A Mutual Fund shareholder report

How to read A Mutual Fund shareholder report Ivestor BulletI How to read A Mutual Fud shareholder report The SEC s Office of Ivestor Educatio ad Advocacy is issuig this Ivestor Bulleti to educate idividual ivestors about mutual fud shareholder reports.

More information

FM4 CREDIT AND BORROWING

FM4 CREDIT AND BORROWING FM4 CREDIT AND BORROWING Whe you purchase big ticket items such as cars, boats, televisios ad the like, retailers ad fiacial istitutios have various terms ad coditios that are implemeted for the cosumer

More information

Domain 1: Designing a SQL Server Instance and a Database Solution

Domain 1: Designing a SQL Server Instance and a Database Solution Maual SQL Server 2008 Desig, Optimize ad Maitai (70-450) 1-800-418-6789 Domai 1: Desigig a SQL Server Istace ad a Database Solutio Desigig for CPU, Memory ad Storage Capacity Requiremets Whe desigig a

More information

Subject CT5 Contingencies Core Technical Syllabus

Subject CT5 Contingencies Core Technical Syllabus Subject CT5 Cotigecies Core Techical Syllabus for the 2015 exams 1 Jue 2014 Aim The aim of the Cotigecies subject is to provide a groudig i the mathematical techiques which ca be used to model ad value

More information

Flexible Trust. (Settlor as trustee with optional survivorship clause) Your questions answered. What is a trust? What is a Flexible Trust?

Flexible Trust. (Settlor as trustee with optional survivorship clause) Your questions answered. What is a trust? What is a Flexible Trust? Flexible Trust (Settl as trustee with optioal survivship clause) Your questios aswered Uderstadig trusts ad their implicatios ca be pretty complicated. You should always get advice from your legal adviser

More information

Flood Emergency Response Plan

Flood Emergency Response Plan Flood Emergecy Respose Pla This reprit is made available for iformatioal purposes oly i support of the isurace relatioship betwee FM Global ad its cliets. This iformatio does ot chage or supplemet policy

More information

Withdrawals with SunAmerica Income Plus 6% SM

Withdrawals with SunAmerica Income Plus 6% SM Guaratee cliets Withdrawals with SuAmerica Icome Plus 6% SM More Now More Later More Flexibility Growth with SuAmerica Icome Builder 8% SM For fiacial professioal use oly. Not for distributio to the public.

More information

Comparing Credit Card Finance Charges

Comparing Credit Card Finance Charges Comparig Credit Card Fiace Charges Comparig Credit Card Fiace Charges Decidig if a particular credit card is right for you ivolves uderstadig what it costs ad what it offers you i retur. To determie how

More information

Investing in Stocks WHAT ARE THE DIFFERENT CLASSIFICATIONS OF STOCKS? WHY INVEST IN STOCKS? CAN YOU LOSE MONEY?

Investing in Stocks WHAT ARE THE DIFFERENT CLASSIFICATIONS OF STOCKS? WHY INVEST IN STOCKS? CAN YOU LOSE MONEY? Ivestig i Stocks Ivestig i Stocks Busiesses sell shares of stock to ivestors as a way to raise moey to fiace expasio, pay off debt ad provide operatig capital. Ecoomic coditios: Employmet, iflatio, ivetory

More information

Baan Service Master Data Management

Baan Service Master Data Management Baa Service Master Data Maagemet Module Procedure UP069A US Documetiformatio Documet Documet code : UP069A US Documet group : User Documetatio Documet title : Master Data Maagemet Applicatio/Package :

More information

HSAs the American Fidelity Way:

HSAs the American Fidelity Way: Health Ser vices Admiistratio, LLC HSAs the America Fidelity Way: Kowledge, Experiece, Commitmet With over 30 years experiece i providig pre-tax services, America Fidelity is a pioeer i Sectio 125 flexible

More information

LEASE-PURCHASE DECISION

LEASE-PURCHASE DECISION Public Procuremet Practice STANDARD The decisio to lease or purchase should be cosidered o a case-by case evaluatio of comparative costs ad other factors. 1 Procuremet should coduct a cost/ beefit aalysis

More information

Retirement System for Employees and Teachers of the State of Maryland. MARYLAND STATE RETIREMENT and PENSION SYSTEM. Benefits

Retirement System for Employees and Teachers of the State of Maryland. MARYLAND STATE RETIREMENT and PENSION SYSTEM. Benefits Retiremet System for Employees ad Teachers of the State of Marylad hadbook ed 0 vis 01 R e ly 2 Ju MARYLAND STATE RETIREMENT ad PENSION SYSTEM Beefits RETIREMENT SYSTEM FOR EMPLOYEES AND TEACHERS OF THE

More information

For customers Income protection the facts

For customers Income protection the facts For customers Icome protectio the facts We ve desiged this documet to give you more iformatio about our icome protectio beefits. It does t form part of ay cotract betwee you ad/or us. This iformatio refers

More information

Information about Bankruptcy

Information about Bankruptcy Iformatio about Bakruptcy Isolvecy Service of Irelad Seirbhís Dócmhaieachta a héirea Isolvecy Service of Irelad Seirbhís Dócmhaieachta a héirea What is the? The Isolvecy Service of Irelad () is a idepedet

More information

Choosing a Mortgage FIXED-RATE MORTGAGES. ADJUSTABLE-RATE MORTGAGES (ARMs)

Choosing a Mortgage FIXED-RATE MORTGAGES. ADJUSTABLE-RATE MORTGAGES (ARMs) Choosig A Mortgage Like homes, home mortgages come i all shapes ad sizes: short-term, log-term, fixed, adjustable, jumbo, balloo these are all terms that will soo be familiar to you, if they re ot already.

More information

New job at the Japanese company, would like to know about the health insurance. What's the process to apply for the insurance?

New job at the Japanese company, would like to know about the health insurance. What's the process to apply for the insurance? Cabiet ねん かせんぶ ねん しゅが かせんぶ じてん しゅうせい 8-4-2 (2008 年 下 線 部 &2009 年 朱 書 き 下 線 部 時 点 修 正 ) Level 3 Chapter Illess Sectio Public health isurace Cotets Health isurace 1 Possible questio ad backgroud. New job

More information

Disability Income Insurance

Disability Income Insurance Disability Icome Isurace Admiistered by The Parters Group ad Member Compay Kerr Cruickshak Member Compay: Negotiated Limited Time Offer INDIVIDUAL DISABILITY COVERAGE PROGRAM HIGHLIGHTS: Discouted, Specialty,

More information

Pre-Suit Collection Strategies

Pre-Suit Collection Strategies Pre-Suit Collectio Strategies Writte by Charles PT Phoeix How to Decide Whether to Pursue Collectio Calculatig the Value of Collectio As with ay busiess litigatio, all factors associated with the process

More information

Simple Annuities Present Value.

Simple Annuities Present Value. Simple Auities Preset Value. OBJECTIVES (i) To uderstad the uderlyig priciple of a preset value auity. (ii) To use a CASIO CFX-9850GB PLUS to efficietly compute values associated with preset value auities.

More information

Time Value of Money. First some technical stuff. HP10B II users

Time Value of Money. First some technical stuff. HP10B II users Time Value of Moey Basis for the course Power of compoud iterest $3,600 each year ito a 401(k) pla yields $2,390,000 i 40 years First some techical stuff You will use your fiacial calculator i every sigle

More information

INDEPENDENT BUSINESS PLAN EVENT 2016

INDEPENDENT BUSINESS PLAN EVENT 2016 INDEPENDENT BUSINESS PLAN EVENT 2016 The Idepedet Busiess Pla Evet ivolves the developmet of a comprehesive proposal to start a ew busiess. Ay type of busiess may be used. The Idepedet Busiess Pla Evet

More information

CCH Accountants Starter Pack

CCH Accountants Starter Pack CCH Accoutats Starter Pack We may be a bit smaller, but fudametally we re o differet to ay other accoutig practice. Util ow, smaller firms have faced a stark choice: Buy cheaply, kowig that the practice

More information

Grow your business with savings and debt management solutions

Grow your business with savings and debt management solutions Grow your busiess with savigs ad debt maagemet solutios A few great reasos to provide bak ad trust products to your cliets You have the expertise to help your cliets get the best rates ad most competitive

More information

(VCP-310) 1-800-418-6789

(VCP-310) 1-800-418-6789 Maual VMware Lesso 1: Uderstadig the VMware Product Lie I this lesso, you will first lear what virtualizatio is. Next, you ll explore the products offered by VMware that provide virtualizatio services.

More information

Taking DCOP to the Real World: Efficient Complete Solutions for Distributed Multi-Event Scheduling

Taking DCOP to the Real World: Efficient Complete Solutions for Distributed Multi-Event Scheduling Taig DCOP to the Real World: Efficiet Complete Solutios for Distributed Multi-Evet Schedulig Rajiv T. Maheswara, Milid Tambe, Emma Bowrig, Joatha P. Pearce, ad Pradeep araatham Uiversity of Souther Califoria

More information

I apply to subscribe for a Stocks & Shares ISA for the tax year 20 /20 and each subsequent year until further notice.

I apply to subscribe for a Stocks & Shares ISA for the tax year 20 /20 and each subsequent year until further notice. IFSL Brooks Macdoald Fud Stocks & Shares ISA Trasfer Applicatio Form IFSL Brooks Macdoald Fud Stocks & Shares ISA Trasfer Applicatio Form Please complete usig BLOCK CAPITALS ad retur the completed form

More information

Bond Valuation I. What is a bond? Cash Flows of A Typical Bond. Bond Valuation. Coupon Rate and Current Yield. Cash Flows of A Typical Bond

Bond Valuation I. What is a bond? Cash Flows of A Typical Bond. Bond Valuation. Coupon Rate and Current Yield. Cash Flows of A Typical Bond What is a bod? Bod Valuatio I Bod is a I.O.U. Bod is a borrowig agreemet Bod issuers borrow moey from bod holders Bod is a fixed-icome security that typically pays periodic coupo paymets, ad a pricipal

More information

Voluntary Life and AD&D Insurance

Voluntary Life and AD&D Insurance Volutary Life ad AD&D Isurace Date: March 2014 To: All JMA beefit eligible members From: Wells Fargo Isurace Services Re: Volutary Life & Accidetal Death ad Dismembermet (AD&D) isurace If you choose to

More information

Introducing Your New Wells Fargo Trust and Investment Statement. Your Account Information Simply Stated.

Introducing Your New Wells Fargo Trust and Investment Statement. Your Account Information Simply Stated. Itroducig Your New Wells Fargo Trust ad Ivestmet Statemet. Your Accout Iformatio Simply Stated. We are pleased to itroduce your ew easy-to-read statemet. It provides a overview of your accout ad a complete

More information

I apply to subscribe for a Stocks & Shares NISA for the tax year 2015/2016 and each subsequent year until further notice.

I apply to subscribe for a Stocks & Shares NISA for the tax year 2015/2016 and each subsequent year until further notice. IFSL Brooks Macdoald Fud Stocks & Shares NISA trasfer applicatio form IFSL Brooks Macdoald Fud Stocks & Shares NISA trasfer applicatio form Please complete usig BLOCK CAPITALS ad retur the completed form

More information

CHAPTER 11 Financial mathematics

CHAPTER 11 Financial mathematics CHAPTER 11 Fiacial mathematics I this chapter you will: Calculate iterest usig the simple iterest formula ( ) Use the simple iterest formula to calculate the pricipal (P) Use the simple iterest formula

More information

How deductible plans work

How deductible plans work Idividual ad Family Plas DEDUCTIBLE PLANS How deductible plas work Deductible plas geerally offer lower mothly premiums i exchage for payig more out of your ow pocket for services covered by your health

More information

Question 2: How is a loan amortized?

Question 2: How is a loan amortized? Questio 2: How is a loa amortized? Decreasig auities may be used i auto or home loas. I these types of loas, some amout of moey is borrowed. Fixed paymets are made to pay off the loa as well as ay accrued

More information

Analyzing Longitudinal Data from Complex Surveys Using SUDAAN

Analyzing Longitudinal Data from Complex Surveys Using SUDAAN Aalyzig Logitudial Data from Complex Surveys Usig SUDAAN Darryl Creel Statistics ad Epidemiology, RTI Iteratioal, 312 Trotter Farm Drive, Rockville, MD, 20850 Abstract SUDAAN: Software for the Statistical

More information

Present Value Tax Expenditure Estimate of Tax Assistance for Retirement Saving

Present Value Tax Expenditure Estimate of Tax Assistance for Retirement Saving Preset Value Tax Expediture Estimate of Tax Assistace for Retiremet Savig Tax Policy Brach Departmet of Fiace Jue 30, 1998 2 Preset Value Tax Expediture Estimate of Tax Assistace for Retiremet Savig This

More information

Section 3: Renters and Rental Units

Section 3: Renters and Rental Units Sectio 3: Reters ad Retal Uits About two millio New York City households roughly two-thirds ret their homes. Over the past decade retal housig has become less affordable to may New Yorkers. Give the dowtur

More information

Shareholder Information Brochure

Shareholder Information Brochure The Ivestor Service ad Automatic Divided Reivestmet Program for Shareholders of Johso & Johso Shareholder Iformatio Brochure The Program is sposored ad admiistered by Computershare Trust Compay, N.A.,

More information

NATIONAL SENIOR CERTIFICATE GRADE 12

NATIONAL SENIOR CERTIFICATE GRADE 12 NATIONAL SENIOR CERTIFICATE GRADE MATHEMATICS P EXEMPLAR 04 MARKS: 50 TIME: 3 hours This questio paper cosists of 8 pages ad iformatio sheet. Please tur over Mathematics/P DBE/04 NSC Grade Eemplar INSTRUCTIONS

More information

Chapter 7: Confidence Interval and Sample Size

Chapter 7: Confidence Interval and Sample Size Chapter 7: Cofidece Iterval ad Sample Size Learig Objectives Upo successful completio of Chapter 7, you will be able to: Fid the cofidece iterval for the mea, proportio, ad variace. Determie the miimum

More information

Lesson 17 Pearson s Correlation Coefficient

Lesson 17 Pearson s Correlation Coefficient Outlie Measures of Relatioships Pearso s Correlatio Coefficiet (r) -types of data -scatter plots -measure of directio -measure of stregth Computatio -covariatio of X ad Y -uique variatio i X ad Y -measurig

More information

ODBC. Getting Started With Sage Timberline Office ODBC

ODBC. Getting Started With Sage Timberline Office ODBC ODBC Gettig Started With Sage Timberlie Office ODBC NOTICE This documet ad the Sage Timberlie Office software may be used oly i accordace with the accompayig Sage Timberlie Office Ed User Licese Agreemet.

More information

Corporation tax trading profits

Corporation tax trading profits 2 Corporatio tax tradig profits this chapter covers... I this chapter we provide a brief review of the Corporatio Tax computatio, ad examie the step by step procedures for compilig the computatio, before

More information

HCL Dynamic Spiking Protocol

HCL Dynamic Spiking Protocol ELI LILLY AND COMPANY TIPPECANOE LABORATORIES LAFAYETTE, IN Revisio 2.0 TABLE OF CONTENTS REVISION HISTORY... 2. REVISION.0... 2.2 REVISION 2.0... 2 2 OVERVIEW... 3 3 DEFINITIONS... 5 4 EQUIPMENT... 7

More information

I. Chi-squared Distributions

I. Chi-squared Distributions 1 M 358K Supplemet to Chapter 23: CHI-SQUARED DISTRIBUTIONS, T-DISTRIBUTIONS, AND DEGREES OF FREEDOM To uderstad t-distributios, we first eed to look at aother family of distributios, the chi-squared distributios.

More information

Get advice now. Are you worried about your mortgage? New edition

Get advice now. Are you worried about your mortgage? New edition New editio Jauary 2009 Are you worried about your mortgage? Get advice ow If you are strugglig to pay your mortgage, or you thik it will be difficult to pay more whe your fixed-rate deal eds, act ow to

More information

SECTION 1.5 : SUMMATION NOTATION + WORK WITH SEQUENCES

SECTION 1.5 : SUMMATION NOTATION + WORK WITH SEQUENCES SECTION 1.5 : SUMMATION NOTATION + WORK WITH SEQUENCES Read Sectio 1.5 (pages 5 9) Overview I Sectio 1.5 we lear to work with summatio otatio ad formulas. We will also itroduce a brief overview of sequeces,

More information

Income from property

Income from property 2 Icome from property this chapter covers... I this chapter we will examie how icome from reted UK property is taxed. We will start by examiig what exactly is covered by the rules that we eed to lear,

More information

FI A CIAL MATHEMATICS

FI A CIAL MATHEMATICS CHAPTER 7 FI A CIAL MATHEMATICS Page Cotets 7.1 Compoud Value 117 7.2 Compoud Value of a Auity 118 7.3 Sikig Fuds 119 7.4 Preset Value 122 7.5 Preset Value of a Auity 122 7.6 Term Loas ad Amortizatio 123

More information

Confidence Intervals for One Mean

Confidence Intervals for One Mean Chapter 420 Cofidece Itervals for Oe Mea Itroductio This routie calculates the sample size ecessary to achieve a specified distace from the mea to the cofidece limit(s) at a stated cofidece level for a

More information

HOSPITAL NURSE STAFFING SURVEY

HOSPITAL NURSE STAFFING SURVEY 2012 Ceter for Nursig Workforce St udies HOSPITAL NURSE STAFFING SURVEY Vacacy ad Turover Itroductio The Hospital Nurse Staffig Survey (HNSS) assesses the size ad effects of the ursig shortage i hospitals,

More information

Hypergeometric Distributions

Hypergeometric Distributions 7.4 Hypergeometric Distributios Whe choosig the startig lie-up for a game, a coach obviously has to choose a differet player for each positio. Similarly, whe a uio elects delegates for a covetio or you

More information

Forecasting techniques

Forecasting techniques 2 Forecastig techiques this chapter covers... I this chapter we will examie some useful forecastig techiques that ca be applied whe budgetig. We start by lookig at the way that samplig ca be used to collect

More information

9.8: THE POWER OF A TEST

9.8: THE POWER OF A TEST 9.8: The Power of a Test CD9-1 9.8: THE POWER OF A TEST I the iitial discussio of statistical hypothesis testig, the two types of risks that are take whe decisios are made about populatio parameters based

More information

CDs Bought at a Bank verses CD s Bought from a Brokerage. Floyd Vest

CDs Bought at a Bank verses CD s Bought from a Brokerage. Floyd Vest CDs Bought at a Bak verses CD s Bought from a Brokerage Floyd Vest CDs bought at a bak. CD stads for Certificate of Deposit with the CD origiatig i a FDIC isured bak so that the CD is isured by the Uited

More information

PFF2 2015/16. Assessment of Financial Circumstances For parents and partners of students. /SFEngland. /SF_England SFE/PFF2/1516/B

PFF2 2015/16. Assessment of Financial Circumstances For parents and partners of students. /SFEngland. /SF_England SFE/PFF2/1516/B PFF2 2015/16 Assessmet of Fiacial Circumstaces For parets ad parters of studets SFE/PFF2/1516/B /SF_Eglad /SFEglad Who should complete this form? Complete this form if you are: The studet s atural or adoptive

More information

Week 3 Conditional probabilities, Bayes formula, WEEK 3 page 1 Expected value of a random variable

Week 3 Conditional probabilities, Bayes formula, WEEK 3 page 1 Expected value of a random variable Week 3 Coditioal probabilities, Bayes formula, WEEK 3 page 1 Expected value of a radom variable We recall our discussio of 5 card poker hads. Example 13 : a) What is the probability of evet A that a 5

More information

Current Year Income Assessment Form

Current Year Income Assessment Form Curret Year Icome Assessmet Form Academic Year 2015/16 Persoal details Perso 1 Your Customer Referece Number Your Customer Referece Number Name Name Date of birth Address / / Date of birth / / Address

More information

A GUIDE TO LEVEL 3 VALUE ADDED IN 2013 SCHOOL AND COLLEGE PERFORMANCE TABLES

A GUIDE TO LEVEL 3 VALUE ADDED IN 2013 SCHOOL AND COLLEGE PERFORMANCE TABLES A GUIDE TO LEVEL 3 VALUE ADDED IN 2013 SCHOOL AND COLLEGE PERFORMANCE TABLES Cotets Page No. Summary Iterpretig School ad College Value Added Scores 2 What is Value Added? 3 The Learer Achievemet Tracker

More information

Settling Insurance Claims After a Disaster What you need to know about how to file a claim how the claim process works what s covered and what s not

Settling Insurance Claims After a Disaster What you need to know about how to file a claim how the claim process works what s covered and what s not Settlig Isurace Claims After a Disaster What you eed to kow about how to file a claim how the claim process works what s covered ad what s ot First Steps Cotact your aget or compay immediately. Fid out

More information

CHAPTER 3 DIGITAL CODING OF SIGNALS

CHAPTER 3 DIGITAL CODING OF SIGNALS CHAPTER 3 DIGITAL CODING OF SIGNALS Computers are ofte used to automate the recordig of measuremets. The trasducers ad sigal coditioig circuits produce a voltage sigal that is proportioal to a quatity

More information

A Resource for Free-standing Mathematics Qualifications Working with %

A Resource for Free-standing Mathematics Qualifications Working with % Ca you aswer these questios? A savigs accout gives % iterest per aum.. If 000 is ivested i this accout, how much will be i the accout at the ed of years? A ew car costs 16 000 ad its value falls by 1%

More information

HHS ISSUES ADDITIONAL GUIDANCE ON TRANSITIONAL REINSURANCE PROGRAM

HHS ISSUES ADDITIONAL GUIDANCE ON TRANSITIONAL REINSURANCE PROGRAM HUMAN CAPITAL PRACTICE ALERT: HEALTH CARE REFORM BILL Jauary 2013 www.willis.com HHS ISSUES ADDITIONAL GUIDANCE ON TRANSITIONAL REINSURANCE PROGRAM Sectio 1341 of the Patiet Protectio ad Affordable Care

More information

Discrete Mathematics and Probability Theory Spring 2014 Anant Sahai Note 13

Discrete Mathematics and Probability Theory Spring 2014 Anant Sahai Note 13 EECS 70 Discrete Mathematics ad Probability Theory Sprig 2014 Aat Sahai Note 13 Itroductio At this poit, we have see eough examples that it is worth just takig stock of our model of probability ad may

More information

summary of cover CONTRACT WORKS INSURANCE

summary of cover CONTRACT WORKS INSURANCE 1 SUMMARY OF COVER CONTRACT WORKS summary of cover CONTRACT WORKS INSURANCE This documet details the cover we ca provide for our commercial or church policyholders whe udertakig buildig or reovatio works.

More information