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write only ' T ' or ' F ' and the answer presented in this form will be graded as incorrect. For each sub-question, every
write only ' T ' or ' F ' and the answer presented in this form will be graded as incorrect. For each sub-question, every correct answer is worth +1 mark, every unanswered question is worth 0 marks, and every incorrect answer is worth -1 mark ( (he., if the answer is incorrect, you lose I mark): "No further explanation is needed. a) Squirtle spends $25,000 purchasing an annuity at t=0 in exchange for $10,000 benefit per annum in arrears for the next three years. The table below shows the consumer price index (CPI). i. The money-weighted rate of retum is 2.3% per annum convertible quarterly (to the nearest 0.1% ). ii. The real nate of retum is 0.7% per quarter (to the nearest 0.1% ) based on t=0 's purchasing power. b) Answer TRUE or FALSE for each of the following. i. Suppose the accumulated value at t (in years) is S(t)=0.3t+5, the force of interest in the eighth year is therefore 4.1% (to the nearest 0.1% )
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