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Summary: 1/27
Chapter 1. Basic Interest Theory.
Manual for SOA Exam FM/CAS Exam 2.
Chapter 1. Basic Interest Theory.
Section 1.3. Compounded interest.
c 2009. Miguel A. Arcones. All rights reserved.
Extract from:
"Arcones' Manual for the SOA Exam FM/CAS Exam 2,
Financial Mathematics. Fall 2009 Edition",
available at http://www.actexmadriver.com/
c 2009. Miguel A. Arcones. All rights reserved. Manual for SOA Exam FM/CAS Exam 2.
2/27
Chapter 1. Basic Interest Theory. Section 1.3. Compounded interest.
Compound interest
Under compound interest the amount function is
A(t) = A(0)(1 + i)t
, t 0,
where i is the effective annual rate of interest.
c 2009. Miguel A. Arcones. All rights reserved. Manual for SOA Exam FM/CAS Exam 2.
3/27
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