View of /trunk/NationalProblemLibrary/UVA-FinancialMath/setFinancialMath-Sect53-ContingentPay/math114-53-05.pg

    1 ## DESCRIPTION
    2 ##  Financial mathematics: Contingent payments
    3 ## ENDDESCRIPTION
    4 
    5 ## KEYWORDS('financial mathematics', 'contingent payments')
    6 ## JJH tagged this problem.
    7 
    8 ## DBsubject('Financial Mathematics')
    9 ## DBchapter('Probability and Contingent Payments')
   10 ## DBsection('Contingent Payments')
   11 ## Date('5/22/2005')
   12 ## Author('Jeff Holt')
   13 ## Institution('UVA')
   14 ## TitleText1('Financial Mathematics')
   15 ## EditionText1('1')
   16 ## AuthorText1('Holt')
   17 ## Section1('5.3')
   18 ## Problem1()
   19 
   20 DOCUMENT();        # This should be the first executable line in the problem.
   21 
   22 loadMacros("PG.pl",
   23            "PGbasicmacros.pl",
   24            "PGchoicemacros.pl",
   25            "PGanswermacros.pl",
   26 "PGauxiliaryFunctions.pl");
   27 
   28 TEXT(beginproblem());
   29 $showPartialCorrectAnswers = 0;
   30 
   31 $yp = random(8.8,10.3,0.1);
   32 $y = 0.01*$yp;
   33 $p = random(.85,.95,.01);
   34 $q = random(.75,.85,.01);
   35 $r = random(.65,.75,.01);
   36 $e = 0.01*floor(100*($p*1000*(1+$y)**(-1) + $q*1000*(1+$y)**(-2) + $r*1000*(1+$y)**(-3)));
   37 
   38 # Present the text.
   39 
   40 TEXT(EV2(<<EOT));
   41 
   42 You have an investment opportunity to receive 1000 dollars at the end of
   43 each year for the next 3 years.  The probability of receiving the first
   44 payment is $p, and the probability of receiving the second is $q.
   45 If the expected yield rate is $yp percent effective, and the expected present
   46 value is $e dollars, what is the probability of receiving the third payment?
   47 
   48 
   49 $BR
   50 
   51 Answer = \{ &ans_rule(30) \} percent.
   52 $BR
   53 
   54 EOT
   55 
   56 $ans = $r*100;
   57 ANS(num_cmp($ans, format => '%0.3f', tol => .01) );
   58 
   59 
   60 ENDDOCUMENT();        # This should be the last executable line in the problem.