Numerical Solutions to Sample Test Problems =========================================== (INCLUDES corrections) 1. (a) > 1e5*(1-1.06^(-3))/(1-1.06^(-20)) [1] 23304.54 (b) > (1e5-23304.54)*1.06^3*(1.06^(1/12)-1) [1] 444.6289 2. (a) mu(t) = 5/(80+t) (b) integral from 0 to infty of sqrt(t)*1e4*5*80^5/(80+t)^6 > integrate(function(t) sqrt(t)*1e4*5*80^5/(80+t)^6,0,Inf)$value [1] 38416.96 3. > ((1+.06/4)^8*exp(.01*3+.01*(5^2-2^2)))^.2-1 [1] 0.07446384 4. (a) .75-.5/.9 = .1944 (b) .9 + (20/30)*(.9*.75-.9) = .75