Simple Annuities Present Value.


 Gwendoline Lyons
 3 years ago
 Views:
Transcription
1 Simple Auities Preset Value. OBJECTIVES (i) To uderstad the uderlyig priciple of a preset value auity. (ii) To use a CASIO CFX9850GB PLUS to efficietly compute values associated with preset value auities. ote that we suggest you complete the activity called Uderstadig ad workig with compoud iterest before startig this set of activities. EXPLORATORY ACTIVITIES Activity 1: Payig back a loa. Suppose I am iterestig i buyig a ew large (45 ich) Sharp LCD TV RRP $ Also, suppose I have to take out a loa for such a large purchase. It is a shame, but may people do ot uderstad the way the repaymets are calculated or how to carry out some what if scearios with loas. This ivestigatio will equip you to be able to do this, with ease. Suppose you borrow $12000 from a bak. The bak tells you that you must make regular repaymets every moth for 3 years util you have paid back the loa. Ufortuately, for you, it is ot as simple has repayig $ because the bak has allowed you to use their moey ad wat some moey i retur for the privilege (this is called iterest). The way the process works ca be described as follows: You borrow $12000 (preset value of the loa) ad the bak charges you (adds to the loa) a percetage of this for its use durig the first moth. At the ed of the moth you make a repaymet (cotributio). So at the start of the ext moth you owe the startig preset value + the iterest  your repaymet (cotributio). The the bak charges you a percetage of this moths preset value for usig it durig this moth ad you make aother repaymet (cotributio) at the ed of this moth. So at the start of the ext moth you owe the previous moths preset value + the iterest figure  your repaymet. This (repetitive) process cotiues each moth util you owe othig. Page 1 of 5
2 Let s experimet. Suppose that the baks states the iterest will be 7% per aum compouded mothly ad that you have to make mothly repaymets of $40. To see the amout you would owe at the ed of the first moth (the preset value of the loa at the start of the secod moth) we could do the followig usig the 9850GB PLUS: Eter RU mode Eter Commit it to the calculators aswer mode by pressig EXE Multiply the As(wer) (SHIFT the ()) by ( ) Subtract 40 ad calculate the aswer by pressig EXE You should fid that preset value of the auity at the start of the ext moth is $ Pressig EXE agai will repeat the process for the secod moth. You should fid you would owe (the preset value at the start of the third moth) $ (to the earest cet). You should realize that somethig is wrog here. Keep pressig the EXE butto to see the amouts you will owe moth by moth. What do you otice? Clearly the amout of your repaymet must be greater tha the iterest charged or you will ever pay the loa back. Lets suppose you pay back $50 per moth. You ca ivestigate this without reeterig the whole calculatio. First commit to the AS memory (12000 ad EXE). You must do this as the machie takes the last umber computed ad places it i the AS memory. Page 2 of 5
3 ow press AC/O to clear the RU scree ad the press the UP ARROW ( ) of the mouse twice to recall the previous calculatio we etered (uless you have tured the machie off or chaged modes). ow press to have the cursor eter the calculatio lie. You ca edit the calculatio by pressig repeatedly util you have the cursor o the 4 i the umeral 40. The press the DEL(ete) key ad the 5. You should fid that you owe $12020 at the start of the secod moth. So you are still ot makig large eough repaymets. ow you ca experimet to fid the amout you must repay to breakeve. Explore this further ad share your fidigs with your colleagues. Be sure to experimet here with cotributios greater tha the iterest amout. Ca you thik of ay other situatios related to ivestig where this process is applied? Oe such case is a retiremet fud where a retiree has, for example, $ ad ivests it i a auity ad takes out regular istallmets (egative cotributios if you like). Such cases as we have see here are traditioally called Preset Value auities because they are associated with situatios where you eed the moey presetly the value of the auity is i the preset. That is, you start with some moey i the preset ad it is eroded to zero evetually. Activity 2: Geeralisig the Preset Value auity computatio. A formula exists for computig values associated with Preset Value auities. Its use saves us from repeatedly pressig the equal sig o the calculator. The derivatio of the formula relies o kowledge of geometric series. You might like to research this. Firstly, defie each quatity as follows: Let the preset value of the auity, after compoudig periods, be Let the regular cotributios (or take outs) be M Let the percetage iterest rate per compoudig period be r (expressed as a decimal) Let the umber of compoudig periods be Page 3 of 5
4 The formula is: = M ( ) 1+ r 1 r( 1+ r) The 9850Gb PLUS ca be use to compute the value of, M, r or if all but oe of the variables is kow. I EQUA mode, after choosig SOLV(er) (F3) the formula ca be etered as P = M ( ) 1+ R 1 R( 1 + R) usig bracket carefully. ote that is replaced with P as sesible chage. So, if M = 100, r explai why? = R= , ad = =1, you should fid that P < 100, ca you Oce the result is give you ca cotiue to use the formula you have etered. Simply press REPT (F1) ad you will be prompted for the values of the variables agai. This is a useful feature if you have may of the same computatios to do where the values of the variable chage ofte. Activity 3: Usig the formula more broadly. Of course we ca use the formula for more tha just computig the preset value of the auity after iterest periods. Suppose we wated to kow how log we could remove $1500 per moth from a auity with preset value $ if the iterest paid was 4% compouded mothly This would require us to solve the equatio = for. Page 4 of 5
5 Proceed as see below: ad i the blik of a eye EXERCISES The purpose of the exercises is to give you a opportuity to do some idepedet work with simple auities ad to develop fluecy with both the mathematical cocepts ad Casio 9850GB PLUS. Exercise 1. Ralph borrows $15000 to buy a car. The coditios of the loa are that he must make repaymets $350 each moth. The iterest rate associated with the loa is 12% per aum compouded mothly. a) How log will Ralph take to pay the loa back? b) How much iterest does Ralph pay? c) After how may periods will the amout owed first fall below $ SOLUTIOS Exercise 1 a) After 57 periods (4 years ad 9 moths) he will owe less tha the paymet value ($83.80). b) $ c) 23 periods. Page 5 of 5
Present Value Factor To bring one dollar in the future back to present, one uses the Present Value Factor (PVF): Concept 9: Present Value
Cocept 9: Preset Value Is the value of a dollar received today the same as received a year from today? A dollar today is worth more tha a dollar tomorrow because of iflatio, opportuity cost, ad risk Brigig
More informationCHAPTER 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 informationFM4 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 informationFI 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 informationTime 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 information5.4 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 informationCHAPTER 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 informationI. 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 informationMMQ Problems Solutions with Calculators. Managerial Finance
MMQ Problems Solutios with Calculators Maagerial Fiace 2008 Adrew Hall. MMQ Solutios With Calculators. Page 1 MMQ 1: Suppose Newma s spi lads o the prize of $100 to be collected i exactly 2 years, but
More information2 Time Value of Money
2 Time Value of Moey BASIC CONCEPTS AND FORMULAE 1. Time Value of Moey It meas moey has time value. A rupee today is more valuable tha a rupee a year hece. We use rate of iterest to express the time value
More information.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 informationTime Value of Money, NPV and IRR equation solving with the TI86
Time Value of Moey NPV ad IRR Equatio Solvig with the TI86 (may work with TI85) (similar process works with TI83, TI83 Plus ad may work with TI82) Time Value of Moey, NPV ad IRR equatio solvig with
More informationTerminology for Bonds and Loans
³ ² ± Termiology for Bods ad Loas Pricipal give to borrower whe loa is made Simple loa: pricipal plus iterest repaid at oe date Fixedpaymet loa: series of (ofte equal) repaymets Bod is issued at some
More informationCDs 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 informationLearning 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 timevalue
More informationA Resource for Freestanding 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 informationSolving Logarithms and Exponential Equations
Solvig Logarithms ad Epoetial Equatios Logarithmic Equatios There are two major ideas required whe solvig Logarithmic Equatios. The first is the Defiitio of a Logarithm. You may recall from a earlier topic:
More informationChapter 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 informationChecklist. Assignment
Checklist Part I Fid the simple iterest o a pricipal. Fid a compouded iterest o a pricipal. Part II Use the compoud iterest formula. Compare iterest growth rates. Cotiuous compoudig. (Math 1030) M 1030
More informationQuestion 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 informationClassic Problems at a Glance using the TVM Solver
C H A P T E R 2 Classc Problems at a Glace usg the TVM Solver The table below llustrates the most commo types of classc face problems. The formulas are gve for each calculato. A bref troducto to usg the
More informationVALUATION OF FINANCIAL ASSETS
P A R T T W O As a parter for Erst & Youg, a atioal accoutig ad cosultig firm, Do Erickso is i charge of the busiess valuatio practice for the firm s Southwest regio. Erickso s sigle job for the firm is
More informationwhere: 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 informationNATIONAL SENIOR CERTIFICATE GRADE 12
NATIONAL SENIOR CERTIFICATE GRADE MATHEMATICS P NOVEMBER 009() MARKS: 50 TIME: 3 hours This questio paper cosists of 0 pages, a iformatio sheet ad diagram sheet. Please tur over Mathematics/P DoE/November
More informationModule 4: Mathematical Induction
Module 4: Mathematical Iductio Theme 1: Priciple of Mathematical Iductio Mathematical iductio is used to prove statemets about atural umbers. As studets may remember, we ca write such a statemet as a predicate
More informationTHE TIME VALUE OF MONEY
QRMC04 9/17/01 4:43 PM Page 51 CHAPTER FOUR THE TIME VALUE OF MONEY 4.1 INTRODUCTION AND FUTURE VALUE The perspective ad the orgaizatio of this chapter differs from that of chapters 2 ad 3 i that topics
More informationPENSION 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 informationINVESTMENT 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 informationLesson 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 informationhp calculators HP 30S Base Conversions Numbers in Different Bases Practice Working with Numbers in Different Bases
Numbers i Differet Bases Practice Workig with Numbers i Differet Bases Numbers i differet bases Our umber system (called HiduArabic) is a decimal system (it s also sometimes referred to as deary system)
More informationHow 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 shortterm assets ito chequig ad savigs accouts.
More informationBasic Elements of Arithmetic Sequences and Series
MA40S PRECALCULUS UNIT G GEOMETRIC SEQUENCES CLASS NOTES (COMPLETED NO NEED TO COPY NOTES FROM OVERHEAD) Basic Elemets of Arithmetic Sequeces ad Series Objective: To establish basic elemets of arithmetic
More informationBENEFITCOST ANALYSIS Financial and Economic Appraisal using Spreadsheets
BENEITCST 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 informationGeometric Sequences and Series. Geometric Sequences. Definition of Geometric Sequence. such that. a2 4
3330_0903qxd /5/05 :3 AM Page 663 Sectio 93 93 Geometric Sequeces ad Series 663 Geometric Sequeces ad Series What you should lear Recogize, write, ad fid the th terms of geometric sequeces Fid th partial
More informationwhen n = 1, 2, 3, 4, 5, 6, This list represents the amount of dollars you have after n days. Note: The use of is read as and so on.
Geometric eries Before we defie what is meat by a series, we eed to itroduce a related topic, that of sequeces. Formally, a sequece is a fuctio that computes a ordered list. uppose that o day 1, you have
More informationInstitute 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 informationFINANCIAL MATHEMATICS 12 MARCH 2014
FINNCIL MTHEMTICS 12 MRCH 2014 I ths lesso we: Lesso Descrpto Make use of logarthms to calculate the value of, the tme perod, the equato P1 or P1. Solve problems volvg preset value ad future value autes.
More informationNATIONAL 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 informationhp calculators HP 12C Platinum Statistics  correlation coefficient The correlation coefficient HP12C Platinum correlation coefficient
HP 1C Platium Statistics  correlatio coefficiet The correlatio coefficiet HP1C Platium correlatio coefficiet Practice fidig correlatio coefficiets ad forecastig HP 1C Platium Statistics  correlatio coefficiet
More informationBond 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 fixedicome security that typically pays periodic coupo paymets, ad a pricipal
More informationSECTION 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 informationSoving Recurrence Relations
Sovig Recurrece Relatios Part 1. Homogeeous liear 2d degree relatios with costat coefficiets. Cosider the recurrece relatio ( ) T () + at ( 1) + bt ( 2) = 0 This is called a homogeeous liear 2d degree
More informationSum of Exterior Angles of Polygons TEACHER NOTES
Sum of Exterior Agles of Polygos TEACHER NOTES Math Objectives Studets will determie that the iterior agle of a polygo ad a exterior agle of a polygo form a liear pair (i.e., the two agles are supplemetary).
More information1 Computing the Standard Deviation of Sample Means
Computig the Stadard Deviatio of Sample Meas Quality cotrol charts are based o sample meas ot o idividual values withi a sample. A sample is a group of items, which are cosidered all together for our aalysis.
More informationINTRODUCTION TO ENGINEERING ECONOMICS. Types of Interest
INTRODUCTION TO ENGINEERING ECONOMICS A. J. Clark School of Egieerig Departmet of Civil ad Evirometal Egieerig by Dr. Ibrahim A. Assakkaf Sprig 2000 Departmet of Civil ad Evirometal Egieerig Uiversity
More informationBond Pricing Theorems. Floyd Vest
Bod Pricig Theorems Floyd Vest The followig Bod Pricig Theorems develop mathematically such facts as, whe market iterest rates rise, the price of existig bods falls. If a perso wats to sell a bod i this
More informationMESSAGE TO TEACHERS: NOTE TO EDUCATORS:
MESSAGE TO TEACHERS: NOTE TO EDUCATORS: Attached herewith, please fid suggested lesso plas for term 1 of MATHEMATICS Grade 12. Please ote that these lesso plas are to be used oly as a guide ad teachers
More informationChapter 6: Variance, the law of large numbers and the MonteCarlo method
Chapter 6: Variace, the law of large umbers ad the MoteCarlo method Expected value, variace, ad Chebyshev iequality. If X is a radom variable recall that the expected value of X, E[X] is the average value
More informationInformation 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 informationBINOMIAL EXPANSIONS 12.5. In this section. Some Examples. Obtaining the Coefficients
652 (1226) Chapter 12 Sequeces ad Series 12.5 BINOMIAL EXPANSIONS I this sectio Some Examples Otaiig the Coefficiets The Biomial Theorem I Chapter 5 you leared how to square a iomial. I this sectio you
More informationPreSuit Collection Strategies
PreSuit 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 informationMathematical goals. Starting points. Materials required. Time needed
Level A1 of challege: C A1 Mathematical goals Startig poits Materials required Time eeded Iterpretig algebraic expressios To help learers to: traslate betwee words, symbols, tables, ad area represetatios
More informationConcept #1. Goals for Presentation. I m going to be a mathematics teacher: Where did this stuff come from? Why didn t I know this before?
I m goig to be a mathematics teacher: Why did t I kow this before? Steve Williams Associate Professor of Mathematics/ Coordiator of Secodary Mathematics Educatio Lock Have Uiversity of PA swillia@lhup.edu
More informationKey Ideas Section 81: Overview hypothesis testing Hypothesis Hypothesis Test Section 82: Basics of Hypothesis Testing Null Hypothesis
Chapter 8 Key Ideas Hypothesis (Null ad Alterative), Hypothesis Test, Test Statistic, Pvalue Type I Error, Type II Error, Sigificace Level, Power Sectio 81: Overview Cofidece Itervals (Chapter 7) are
More information8.1 Arithmetic Sequences
MCR3U Uit 8: Sequeces & Series Page 1 of 1 8.1 Arithmetic Sequeces Defiitio: A sequece is a comma separated list of ordered terms that follow a patter. Examples: 1, 2, 3, 4, 5 : a sequece of the first
More informationIn nite Sequences. Dr. Philippe B. Laval Kennesaw State University. October 9, 2008
I ite Sequeces Dr. Philippe B. Laval Keesaw State Uiversity October 9, 2008 Abstract This had out is a itroductio to i ite sequeces. mai de itios ad presets some elemetary results. It gives the I ite Sequeces
More informationUnderstanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions
Udestadig Fiacial Maagemet: A Pactical Guide Guidelie Aswes to the Cocept Check Questios Chapte 4 The Time Value of Moey Cocept Check 4.. What is the meaig of the tems isketu tadeoff ad time value of
More informationSolving Inequalities
Solvig Iequalities Say Thaks to the Authors Click http://www.ck12.org/saythaks (No sig i required) To access a customizable versio of this book, as well as other iteractive cotet, visit www.ck12.org CK12
More informationSavings 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 informationManaging Your Money. UNIT 4D Loan Payments, Credit Cards, and Mortgages: We calculate monthly payments and explore loan issues.
A fool ad his moey are soo parted. Eglish proverb Maagig Your Moey Maagig your persoal fiaces is a complex task i the moder world. If you are like most Americas, you already have a bak accout ad at least
More informationCS103A Handout 23 Winter 2002 February 22, 2002 Solving Recurrence Relations
CS3A Hadout 3 Witer 00 February, 00 Solvig Recurrece Relatios Itroductio A wide variety of recurrece problems occur i models. Some of these recurrece relatios ca be solved usig iteratio or some other ad
More informationMoney Math for Teens. Introduction to Earning Interest: 11th and 12th Grades Version
Moey Math fo Tees Itoductio to Eaig Iteest: 11th ad 12th Gades Vesio This Moey Math fo Tees lesso is pat of a seies ceated by Geeatio Moey, a multimedia fiacial liteacy iitiative of the FINRA Ivesto Educatio
More informationThe Euler Totient, the Möbius and the Divisor Functions
The Euler Totiet, the Möbius ad the Divisor Fuctios Rosica Dieva July 29, 2005 Mout Holyoke College South Hadley, MA 01075 1 Ackowledgemets This work was supported by the Mout Holyoke College fellowship
More informationListing terms of a finite sequence List all of the terms of each finite sequence. a) a n n 2 for 1 n 5 1 b) a n for 1 n 4 n 2
74 (4 ) Chapter 4 Sequeces ad Series 4. SEQUENCES I this sectio Defiitio Fidig a Formula for the th Term The word sequece is a familiar word. We may speak of a sequece of evets or say that somethig is
More informationElementary Theory of Russian Roulette
Elemetary Theory of Russia Roulette iterestig patters of fractios Satoshi Hashiba Daisuke Miematsu Ryohei Miyadera Itroductio. Today we are goig to study mathematical theory of Russia roulette. If some
More informationWeek 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 informationConfidence Intervals for One Mean with Tolerance Probability
Chapter 421 Cofidece Itervals for Oe Mea with Tolerace Probability Itroductio This procedure calculates the sample size ecessary to achieve a specified distace from the mea to the cofidece limit(s) with
More informationTO: Users of the ACTEX Review Seminar on DVD for SOA Exam FM/CAS Exam 2
TO: Users of the ACTEX Review Semiar o DVD for SOA Exam FM/CAS Exam FROM: Richard L. (Dick) Lodo, FSA Dear Studets, Thak you for purchasig the DVD recordig of the ACTEX Review Semiar for SOA Exam FM (CAS
More informationProperties of MLE: consistency, asymptotic normality. Fisher information.
Lecture 3 Properties of MLE: cosistecy, asymptotic ormality. Fisher iformatio. I this sectio we will try to uderstad why MLEs are good. Let us recall two facts from probability that we be used ofte throughout
More informationSpss Lab 7: Ttests Section 1
Spss Lab 7: Ttests Sectio I this lab, we will be usig everythig we have leared i our text ad applyig that iformatio to uderstad ttests for parametric ad oparametric data. THERE WILL BE TWO SECTIONS FOR
More informationLesson 12. Sequences and Series
Retur to List of Lessos Lesso. Sequeces ad Series A ifiite sequece { a, a, a,... a,...} ca be thought of as a list of umbers writte i defiite order ad certai patter. It is usually deoted by { a } =, or
More informationPage 1. Real Options for Engineering Systems. What are we up to? Today s agenda. J1: Real Options for Engineering Systems. Richard de Neufville
Real Optios for Egieerig Systems J: Real Optios for Egieerig Systems By (MIT) Stefa Scholtes (CU) Course website: http://msl.mit.edu/cmi/ardet_2002 Stefa Scholtes Judge Istitute of Maagemet, CU Slide What
More informationSequences and Series
CHAPTER 9 Sequeces ad Series 9.. Covergece: Defiitio ad Examples Sequeces The purpose of this chapter is to itroduce a particular way of geeratig algorithms for fidig the values of fuctios defied by their
More informationIncremental calculation of weighted mean and variance
Icremetal calculatio of weighted mea ad variace Toy Fich faf@cam.ac.uk dot@dotat.at Uiversity of Cambridge Computig Service February 009 Abstract I these otes I eplai how to derive formulae for umerically
More informationDivide and Conquer, Solving Recurrences, Integer Multiplication Scribe: Juliana Cook (2015), V. Williams Date: April 6, 2016
CS 6, Lecture 3 Divide ad Coquer, Solvig Recurreces, Iteger Multiplicatio Scribe: Juliaa Cook (05, V Williams Date: April 6, 06 Itroductio Today we will cotiue to talk about divide ad coquer, ad go ito
More informationI 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 informationExample 2 Find the square root of 0. The only square root of 0 is 0 (since 0 is not positive or negative, so those choices don t exist here).
BEGINNING ALGEBRA Roots ad Radicals (revised summer, 00 Olso) Packet to Supplemet the Curret Textbook  Part Review of Square Roots & Irratioals (This portio ca be ay time before Part ad should mostly
More informationLiteral Equations and Formulas
. Literal Equatios ad Formulas. OBJECTIVE 1. Solve a literal equatio for a specified variable May problems i algebra require the use of formulas for their solutio. Formulas are simply equatios that express
More informationFramingham State College Department of Economics and Business Managerial Finance Practice Final Exam Spring 2006
Name Framigham State College Departmet of Ecoomics ad Busiess Maagerial Fiace Practice Fial Exam Sprig 2006 This exam provides questios that are represetative of those cotaied o your exam. This test should
More informationCHAPTER 4: NET PRESENT VALUE
EMBA 807 Corporate Fiace Dr. Rodey Boehe CHAPTER 4: NET PRESENT VALUE (Assiged probles are, 2, 7, 8,, 6, 23, 25, 28, 29, 3, 33, 36, 4, 42, 46, 50, ad 52) The title of this chapter ay be Net Preset Value,
More informationConfidence 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 informationMath C067 Sampling Distributions
Math C067 Samplig Distributios Sample Mea ad Sample Proportio Richard Beigel Some time betwee April 16, 2007 ad April 16, 2007 Examples of Samplig A pollster may try to estimate the proportio of voters
More informationChapter Gaussian Elimination
Chapter 04.06 Gaussia Elimiatio After readig this chapter, you should be able to:. solve a set of simultaeous liear equatios usig Naïve Gauss elimiatio,. lear the pitfalls of the Naïve Gauss elimiatio
More informationAmendments 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 informationRepeating Decimals are decimal numbers that have number(s) after the decimal point that repeat in a pattern.
5.5 Fractios ad Decimals Steps for Chagig a Fractio to a Decimal. Simplify the fractio, if possible. 2. Divide the umerator by the deomiator. d d Repeatig Decimals Repeatig Decimals are decimal umbers
More informationGCSE STATISTICS. 4) How to calculate the range: The difference between the biggest number and the smallest number.
GCSE STATISTICS You should kow: 1) How to draw a frequecy diagram: e.g. NUMBER TALLY FREQUENCY 1 3 5 ) How to draw a bar chart, a pictogram, ad a pie chart. 3) How to use averages: a) Mea  add up all
More informationA probabilistic proof of a binomial identity
A probabilistic proof of a biomial idetity Joatho Peterso Abstract We give a elemetary probabilistic proof of a biomial idetity. The proof is obtaied by computig the probability of a certai evet i two
More informationTAYLOR SERIES, POWER SERIES
TAYLOR SERIES, POWER SERIES The followig represets a (icomplete) collectio of thigs that we covered o the subject of Taylor series ad power series. Warig. Be prepared to prove ay of these thigs durig the
More informationGet 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 fixedrate deal eds, act ow to
More informationDiscrete 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 informationConfidence Intervals. CI for a population mean (σ is known and n > 30 or the variable is normally distributed in the.
Cofidece Itervals A cofidece iterval is a iterval whose purpose is to estimate a parameter (a umber that could, i theory, be calculated from the populatio, if measuremets were available for the whole populatio).
More informationExponential function: For a > 0, the exponential function with base a is defined by. f(x) = a x
MATH 11011 EXPONENTIAL FUNCTIONS KSU AND THEIR APPLICATIONS Defiitios: Expoetial fuctio: For a > 0, the expoetial fuctio with base a is defied by fx) = a x Horizotal asymptote: The lie y = c is a horizotal
More informationCurrent 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 informationHypergeometric Distributions
7.4 Hypergeometric Distributios Whe choosig the startig lieup 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 informationFor 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 informationI. Chisquared Distributions
1 M 358K Supplemet to Chapter 23: CHISQUARED DISTRIBUTIONS, TDISTRIBUTIONS, AND DEGREES OF FREEDOM To uderstad tdistributios, we first eed to look at aother family of distributios, the chisquared distributios.
More informationSENIOR CERTIFICATE EXAMINATIONS
SENIOR CERTIFICATE EXAMINATIONS MATHEMATICS P1 016 MARKS: 150 TIME: 3 hours This questio paper cosists of 9 pages ad 1 iformatio sheet. Please tur over Mathematics/P1 DBE/016 INSTRUCTIONS AND INFORMATION
More informationARITHMETIC AND GEOMETRIC PROGRESSIONS
Arithmetic Ad Geometric Progressios Sequeces Ad ARITHMETIC AND GEOMETRIC PROGRESSIONS Successio of umbers of which oe umber is desigated as the first, other as the secod, aother as the third ad so o gives
More informationConfidence Intervals and Sample Size
8/7/015 C H A P T E R S E V E N Cofidece Itervals ad Copyright 015 The McGrawHill Compaies, Ic. Permissio required for reproductio or display. 1 Cofidece Itervals ad Outlie 71 Cofidece Itervals for the
More informationTHE REGRESSION MODEL IN MATRIX FORM. For simple linear regression, meaning one predictor, the model is. for i = 1, 2, 3,, n
We will cosider the liear regressio model i matrix form. For simple liear regressio, meaig oe predictor, the model is i = + x i + ε i for i =,,,, This model icludes the assumptio that the ε i s are a sample
More information