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Solution: Based from the given we have the following: F 12,100, r 0 .168, and t 125 Since This text is written for students of Moscow State University, studying actu-arial science. Mathematics of flnance and investment.

This book has been named as an alternatively acceptable reference for the Society of Actuaries Exam FM and the Casualty Actuarial Society Exam 2.

MATHEMATICS OF INVESTMENT AN INTRODUCTION Prepared by: Francis Joseph H. Campeña 3 The Bankers Rule or Ordinary Simple Interest is applied whenever a given problems does not specify the time factor to be used. It is based on syllabus of The Institute and Faculty of Actuaries for the subject CT1 (Financial Mathematics) of the Actuarial Profession.