Podcast Beta
Questions and Answers
What is the Bid-offer spread in the unit fund for year 2?
What is the number of survivors in year 46?
What is the After growth and FMC for year 3 in the unit fund?
What is the Unallocated Bid in year 3 for the Non-Unit Fund?
Signup and view all the answers
What is the Profit for year 2 in the Non-Unit Fund?
Signup and view all the answers
What does Bid-offer spread represent in unit-linked funds?
Signup and view all the answers
What will be the source of profit for the company in the given scenario?
Signup and view all the answers
What is the present value of all benefits mentioned in the text?
Signup and view all the answers
Why is the flat rate of interest not a good measure for the cost of borrowing?
Signup and view all the answers
What is the flat rate of interest paid by the customer on the loan?
Signup and view all the answers
What is the PV of payments received by the bank, assuming the bank is correct?
Signup and view all the answers
According to the text, what will be the source of profit for the company?
Signup and view all the answers
What is the PV of repayments if the consumer forum is correct?
Signup and view all the answers
What does PV stand for in financial calculations?
Signup and view all the answers
What does PV of annuity equal to as per the information provided?
Signup and view all the answers
Why is the flat rate of interest not a good measure for cost of borrowing as per information provided?
Signup and view all the answers
Study Notes
Year 2 Calculations
- Bid-offer spread in the unit fund for year 2 is unknown (require more context)
Year 3 Calculations
- After growth and FMC for year 3 in the unit fund is unknown (require more context)
- Unallocated Bid in year 3 for the Non-Unit Fund is unknown (require more context)
Profit Calculations
- Profit for year 2 in the Non-Unit Fund is unknown (require more context)
Bid-Offer Spread
- Bid-offer spread represents the difference between the price at which a unit-linked fund buys and sells units
Profit Source
- The source of profit for the company will be the difference between the bid and offer prices
Present Value
- PV stands for Present Value in financial calculations
- PV of annuity equals the sum of the present values of each payment
Interest Rates
- Flat rate of interest is not a good measure for the cost of borrowing because it does not take into account the timing of payments
- Flat rate of interest paid by the customer on the loan is unknown (require more context)
- PV of payments received by the bank assuming the bank is correct is unknown (require more context)
- PV of repayments if the consumer forum is correct is unknown (require more context)
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of actuarial science with this mock test covering topics such as life tables, insurance premiums, and fund management charges.
