Questions and Answers of Development An Introduction

3.7. The death benefit of a 15 year temporary insurance on a life aged 35 is payable at the end of the year of death. The amount of the benefit is $3000 in the first year and increases by $200 each
3.6. Based on a 6% annual rate of interest, obtaina) R40b) (IA)50 1c) (IA)25:201
3.5. A 10 year temporary insurance on a life aged 55 is purchased for $320. Find the sum insured payable at the end of the year of death, if the annual interest rate is 6%.
3.4. A deferred insurance issued to a life aged 45 pays $8000 at the end of the year of death if death occurs after the age of 50. Based on a 6% annual rate of interest, find the present value and
3.3. A whole life insurance on a life aged 60 pays a death benefit of $7000 at the end of the year of death. Based on a 6% annual rate of interest, determine the present value of the insurance. Also
3.2. Based on a 6% annual rate of interest, finda) C35b) M45c) A50d) V(A50) 1e) A 20:301 1f) V(A 20:301) g) 10 I A35 h) V(lO I A35) 1 i) 51 A40:201
3.1. Based on a 4% annual rate of interest, evaluatea) C40b) C50 1c) A 30:21
2.4. A 20 year pure endowment insurance of $1500 is taken out by a person aged 45. Find the present value and the standard deviation of the insurance, using a 6% annual interest rate.
2.3. An insurance issued to a life aged 40 pays $2000 at the age of 50 on survival. Find the present value and the standard deviation of the insurance, based on a 5% annual rate of interest.
2.2. Based on a 6% annual rate of interest, finda) lOE25b) D50 1c) A45:201
2.1. Based on a 4% annual interest rate, evaluatea) b)c) 5E40 D35 1 A2S:101
1.8. A person pays $100 to an insurance company at the age of 40. The company pays a death benefit of $5000 at the end of the year of death, if death occurs within three years. Determine the amount
1.7. An insured pays an insurance company $600 at the age of 40, $800 at the age of 42, and $1500 at the age of 46. How much can the insurance company pay the insured at the age of 50 on survival?
1.6. An insurance issued to a life aged 30 pays a death benefit of $2000 at the end of the year of death, if death occurs between the ages of 30 and 31. A death benefit of $1500 is paid at the end of
1.5. Obtain the expected present value of the insurance, given in Problem 1.1, at the commencement of the insurance based on the mortality table in Appendix 2.
1.4. Based on i = 5% and the mortality table in Appendix 2, obtaina) 8E50.b) lOE60.
1.3. An insurance issued to a life aged 40 provides a death benefit of $5000. Express the cash flow in the form of C(t*,t) and the present value of the cash flow at the commencement of the insurance
1.2. An insurance issued to a life aged 35 makes a continuous payment at a rate of $2000 per annum while the insured is alive. Express the cash flow in the form of C(t*,t) and the present value of
1.1. An insurance issued to a life aged 30 pays a survival benefit of $500 at the age of 35, $700 at the age of 40, and $1000 at the age of 45. Express the cash flow in the form of C(t*,t) and the
3.6 Prove (19) and (20).
3.5 Using Table 1, obtaina) 9[20]b) P[20]+2c) P[20]+3d) 5P[20]+1e) 69[20]+2f) 3149[20] 3.6.
3.4. Using the mortality table in Appendix 2, obtaina) e30b) 30c) 40d) e 45
3.3. Based on the mortality table in Appendix 2, use linear interpolation to calculatea) 1130.7b) OAP35c) 6.9P45d) 2.3Q70
3.2. Based on the mortality table in Appendix 2, find the probability of the following events.a) A life aged 25 dies before the age of 30.b) A life aged 30 survives to age 60.c) A life aged 40 dies
3.1. Using the mortality table in Appendix 2, obtaina) PSOb) q30c) 7P4Sd) 4SQ20e) 10lSQSO
2.3. Prove that if the force of mortality follows De Moivre's law then .QO .Qx=- (ill-X). ill That means, the original population of .Q 0 at age zero decreases linearly to 0 at age ill.
2.2. The force of mortality for a person is 0.004 between the ages of 40 and 50 and 0.01 between the ages of 50 and 60. Determine the probability that a person aged 40 willa) die before the age of
2.1. The force of mortality for a person is 0.003 between the ages of 35 and 45. Find the probability that a person aged 35 willa) survive the following year.b) die before reaching the age of 36.c)
3.28. A loan of $6000 is repaid in equal installments payable yearly in arrears for 10 years.a) Determine the amount of the annual payment.b) Find the interest content and the capital repayment part
3.27. An amount of $400 is paid at the beginning of 5 two year long periods. Based on a 4% annual interest rate find the present value of the annuity at the beginning of the first year.
3.26. Prove algebraically and also by general reasoning.
3.25. An annuity of $1500 per annum is payable for 10 years. Based on a 5% annual rate of interest, find the present value of the annuity at the beginning of the first year if the payments are madea)
3.24. The payment of a continuous 15 year annuity of $3000 per annum starts 3 years after the purchase time. Determine the price of the annuity on the basis of a 6% annual rate of interest.
3.23. An annuity of $2000 per annum is paid continuously over a period of 10 years. Using a 4% annual rate of interest, determine the present value of the annuity at the beginning of the first year
3.22. Given i = 5%, finda) a 101b) s 201c) 81 ii71d) (I a)3l
3.21. The monthly installments of a 15 year annuity-due are $300 in the first year and increase by $20 each year. Based on a 6% annual rate of interest, find the present value of the annuity at the
3.20. An annuity-due of $1200 per annum is payable monthly for 20 years. Obtain the present value of the annuity at the beginning of the first year on the basis of aa) 5% annual rate of interestb) 5%
3.19. A loan of $5000 is repaid by equal payments made quarterly in advance during a term of 6 years. Using a 7% annual interest rate, find the amount of the quarterly payments.
3.18. A 10 year annuity of $900 per annum is payable monthly in advance. Based on a 4% annual rate of interest, determine the present value of the annuity at the beginning of the first year and the
3.17. Given i = 6%, obtain (2)a) a 151 (12)b) 5201c) I .. (6) 5 a 221 (4)d) (Ia) 81e) (Is h61
3.16. The payments of a 10 year annuity-immediate increase by 3% each year. What is the present value of the annuity at the beginning of the first year if the amount of the first payment is $550 and
3.15. A loan is repaid by a 12 year varying annuity-immediate. The first installment is $1080 and the installments decrease by $90 each year. Determine the amount of the loan using a 5% annual rate
3.14. Given i = 3%, determinea) (la\ 01b) (la)201c) (Is)251'
3.13. The first payment of a 15 year level annuity of $900 per annum is made five years after the annuity is purchased. Show that the purchase price (say X) can be obtained from either of the
3.12. Given i = 5%, determinea) 20la101b) 31 a 151'
3.11. A loan of $9000 is repaid by a 10 year level annuity-immediate. Find the amount of the annual installment based on a 7% annual interest rate.
3.10. Find the present value of a 20 year level annuity-immediate of $800 per annum at the beginning of the first year based on a 3% annual rate of interest. Also find the accumulated value at the
3.9. Given i = 4%, determinea) a 11b) a 141c) s 141d) s 251'
3.8. An annuity is payable yearly in advance for 10 years. The first payment is $500 and each subsequent payment decreases by 3%. Based on a 5% annual interest rate, find the present value of the
3.7. An annuity is payable yearly in advance for 5 years. The payment in the first year is $1000 and the payments increase by $200 each year. Finda) the present value of the annuity at the beginning
3.6. Given i = 0.02, finda) (Iii)121b) (Iii)IS1c) (Is)ls1'
3.5. A loan of $8000 is repaid by 8 equal installments payable yearly in advance with the first payment due 2 years after the loan is taken out. Based on a 9% annual rate of interest, find the amount
3.4. A 10 year level annuity-due of $700 per annum is purchased four years before the payment period starts. Find the purchase price of the annuity based on a 3% annual rate of interest.
3.3. Given i = 8%, determinea) 51 ii 151b) 12lii251.
3.2. An annuity pays $500 yearly in advance for 20 years. Using a 4% annual rate of interest, finda) the present value of the annuity at the beginning of the first year.b) the accumulated value of
3.1. Given i = 6%, obtaina) ii 11b) ii 101c) s 101d) s 201.
2.8. A loan of $8000 is taken out on January 1, 1987. The loan is to be repaid by four installments, calculated on the basis of an 8% annual interest rate. The first installment is $2000 due on
2.7. For an investment of $2332 on January I, 1988, the investor receives $600 on January 1,1989, $650 on January I, 1990, $670 on January I, 1991, and $720 on January I, 1992.a) Verify that the
2.6. A continuous payment is made from January I, 1989 to January I, 1992 at an annual rate of $2000. Find its present value on January I, 1989 and its accumulated value on January I, 1992.
2.5. Consider the following cash flow: $700 paid on January I, 1988, $600 received on January I, 1989, $500 paid on January I, 1991, $800 received on January I, 1992.Based on a 3% annual rate of
2.4. A continuous payment is made from January I, 1990 to January I, 1993 at an annual rate of $1500. Find its present value on January I, 1990 and January I, 1988, using a 3% annual rate of interest.
2.3. Obtain the yield of the following transaction $1500 paid on January I, 1989 $600 received on January I, 1991 $600 received on January 1,1992 $500 received on January I, 1993. Is this transaction
2.2. Consider the following cash flow: $800 paid on January 1, 1989, $1000 paid on January 1, 1990, $700 received on January 1, 1990, $500 paid on January 1, 1992,$2000 received on January I, 1993.
2.1. An account earns 6% interest per annum. How much has to be deposited on January 1, 1988 if we want to make the following withdrawals: $500 on January 1, 1989, $800 on January 1, 1990, $1200 on
1.16. How much money will accumulate to $1200 in one year, if a 5% annual rate of interest is used? 1.17. Assuming a 5% annual rate of interest, find the effective discount rates and the nominal
1.15. A sum of $800 is deposited for one year. Based on a 4% annual rate of inte:est, determinea) the interest if it is paid at the end of the year.b) the interest if it is paid at the beginning of
1.14.a) If i = 0.04, find d,o, and v.b) If d = 0.03, find i,o, and v.c) If 0 = 0.035, find i,d, and v.d) If v = 0.97, find i,d, and 0.
1.13. The interest on a $500 deposit is paid continuously for 3 years. Assume the annual rate of interest is 7%.a) Determine the annual rate of the interest payment.b) Find the total amount of the
1.12. A sum of $2000 is invested at a 7% annual rate of interest for four years.a) How much interest is paid at the end of year four?b) Determine the interest payments if they are made at the end of
year.
1.11. Assume the following nominal rates of interest are used: 7% per annum convertible yearly, 6.7% per annum convertible weekly, 6.4% per annum convertible daily. Determine the accumulation of
1.10. Let i=0.05. Find i(2), (3), (6), and (365),
1.9. Using a 5% effective annual rate of interest, determine the effective rates of interest and the corresponding nominal rates of interest per annum for the following periodsa) March 1 to April
1.8. Given the following annual interest rates, find the corresponding forces of interest per annuma) i=0.025.b) i = 0.05.c) i = 0.07.
1.7. Given the following forces of interest per annum, find the corresponding annual rates of interesta) 0= 0.008.b) 0=0.025.c) 0= 0.037.
1.6. An interest earning account has a constant force of interest per annum of 0.06. If $2500 is deposited on January 1, 1991, what is the accumulation ona) February 1, 1991?b) June14,1991?c)
1.5. A sum of $3000 is deposited on March 1, 1988. If the annual rate of interest is 4% in 1988 and 1989, 5% in 1990, 3% in 1991, and 3.5% in 1992 and 1993, and the a compound interest satisfies (2)
1.4. A sum of $1500 is deposited in a bank account on January 1, 1989. The annual rate of interest is 5%.a) Based on a compound interest satisfying (2), what is the accumulated value on June 1, 1989?
1.3. A sum of $800 is deposited in a bank account on May 1, 1988 at a 4% annual rate of interest. Assuming the accumulation factor satisfies (2), find the accumulation on September 1, 1988. What is
1.2. A sum of $2000 is deposited in a bank account on March 1, 1991 at a 3% annual interest rate. Using simple interest determinea) the accumulated value of the account on May 1, 1991 and the
1.1. A sum of $500 is deposited in a bank account on February 1, 1989. If the account earns interest at a rate of 4% per annum, what is the accumulated value of the account on February 1, 19907 Find
Examine the ideological and practical differences between the phases of mercantile, industrial and late colonialism.
Identify some of the key elements in writings on post-colonialism and suggest how these have enhanced understanding of the colonial experience.
Select a country that was colonised and examine what you believe are the positive and negative legacies of colonialism.
To what extent is it helpful to think in terms of poor countries rather than developing nations?
Have the MDGs succeeded? What hope for success are there for the SDGs?
Assess the current applicability of the assertion that the 'Third World' exists whatever we choose to call it.
Elaborate the view that measures of relative development must include non-economic variables.
Examine the argument that development should be about reducing 'unfreedoms' rather than promoting economic development.
On the other hand, using instances, mainly drawn from China and India, Corbridge (2002a) argues that some examples that Sen uses suggest that the curtailment of individual freedoms can have
What differences will having rapid population growth have on development prospects? The material examined in the above sections has illustrated the changing range of variables used to measured
Why is the youth unemployment rate higher than the total unemployment rate (i.e. for all age groups)? The material examined in the above sections has illustrated the changing range of variables used
What are the causes of these global differences and why do they persist? The material examined in the above sections has illustrated the changing range of variables used to measured development. It
What are the ethical implications of the operation of TNCs and the WTO in the poorer parts of the South?
What drives the anti-globalisation movement? Is it sustainable?
Explain the basis of Tobin-type taxes and consider their potential for changing the face of international development.
'Globalisation dates back over 500 years." What do you see as the development implications of this statement?
Assess the view that while the world may be shrinking. it is also becoming noticeably more unequal.
Consider the statement that contemporary globalisation is bringing forth new forms of localisation.
If you will be using the internet, e-mail, social media, chat-rooms or social networking sites during the coming week, keep a list of the people you are in communication with, and the sites you have

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