Question: 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! Actuarial solution please! A large pension fund has a value of 500,000,000

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

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

1. A large pension fund has a value of N$ 500 000 000 at the start of the year. During the year the fund received contributions of N$ 100 000 000, pays out benefits of N$ 40 000 000 and has interest...

Decision Support Using Excel Solver PREVIEW You are a new investment manager working for a giant mutual fund. You will have $50 million to invest. You want to buy securities that are profitable but...

(45 Marks) Mr Orwell was the managing director of a large company (Peninsula Brokers (Pty) Ltd). He died on 31 May 2016 aged 58 years. He derived income from various sources and his income and...

Tigger Limited is a company that is involved in the tourism industry. Tigger Limited specialises in overnight game drives. The directors of Tigger Limited believe that the most important asset in any...

Sharon Moyo is an Accountant in Harare. She earned the following amounts during the year of assessment ended 31 December 2022. She earned a basic salary of $400 000 per month from January to July...

(40 Marks) Perry Platt (Agent P) works as head of security at a large oil firm (a VAT vendor). He is 66 years old and a South African resident. He has a wife, Candice, and two minor children, Phineas...

BACKGROUND An SM bond is a 35-year Australian government bond with a face value of $1. They are marketed to consumers saving for retirement (who buy the S part) and investors (who buy the M part)....

Hi, I have an Assignment for my Finance Subject. I have attached the necessary documentation here for you to view including the Lecture slides of all the Topics covered for this assignment. Please...

You will write a thorough analysis of a company's annual report. The report should contain professional terminology as well as proper grammar and spelling. Please don't CUT and PASTE from web sites...

You will write a thorough analysis of Verizon Communications Inc. (VZ)'sannual report. The report should contain professional terminology as well as proper grammar and spelling. Please don't CUT and...

A review of the financial statements of private and publicly accountable enterprises may result in finding the following measurement approaches used for their non-strategic investments: (1)...

Assume the market rate is 1% per year. You can start a research group to work on a specific product today (year 0) to end in 3 years from today or when you register success, whichever comes first. If...

In which columns of the cash receipts journal are debits entered? Cash, Sales Discounts, and Cost of Goods Sold Accounts Receivable, Cash, and Cost of Goods Sold Accounts Receivable, Sales Revenue,...

An investor would like to invest $10,000 in a load mutual fund. The mutual fund has a front load of 2.77% and the NAV (price of the fund) is $65.97. What is the number of shares bought?

Apply your own composing style to personalize your messages.

Format memos and e-mail properly.

Discuss the characteristics of appropriate stationery for letters,memos, and envelopes.