• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

apr 2019 q1 iii

D

dimitris13

Member
hi ,

maybe it s trivial but i dont understand the following
it says that claims are 60% higher. why 200/1.6=125 and not just say 200*60%=120?

similarly why for mat : 10000/0.9*1.05 and not 10000*0.9*1.05?

thanks
 
hi ,

maybe it s trivial but i dont understand the following
it says that claims are 60% higher. why 200/1.6=125 and not just say 200*60%=120?

similarly why for mat : 10000/0.9*1.05 and not 10000*0.9*1.05?

thanks
Hi
It is the way the question is written:
You are being asked for the movement in asset share and the question says that:
For deaths: the 200 is 60% higher than asset shares.
So asset share*1.6 =200.
Likewise, with the maturities: the 10,000 is based on smoothed asset share which is 90% of asset share (and is increased by 5%).
So asset share*0.9*1.05 = 10,582.
Hope this helps.
Thanks
Em
 
Back
Top