Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Actuarial solution please! A large pension fund has a value of 500,000,000 at the start of the year. During the year the fund receives contributions

Actuarial solution please! image text in transcribed
A large pension fund has a value of 500,000,000 at the start of the year. During the year the fund receives contributions of 100,000,000, pays out benefits of 40,000,000 and has interest income of 60,000,000. Estimate the yield rate on the fund for each of the following circumstances: Contributions, benefits and interest are uniformly spread throughout the year. Benefits and interest are uniformly spread throughout the year and the contributions are made in one lump-sum at time (i) t =0, t=1/4 t = 1/2 t = 3/5,or t=1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The New Finance Overreaction Complexity And Their Consequences

Authors: Robert A. Haugen

4th International Edition

0132775875, 9780132775878

More Books

Students also viewed these Finance questions

Question

Apply your own composing style to personalize your messages.

Answered: 1 week ago

Question

Format memos and e-mail properly.

Answered: 1 week ago