CONFIDENTIAL CSIDEC 2013/ASC454 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE : ACTUARIAL PROGRAMMING ‘COURSE CODE ASC454 EXAMINATION DECEMBER 2013 TIME 3 HOURS INSTRUCTIONS TO CANDIDATES 1 This question paper consists of five (5) questions. 2 Answer ALL questions in the Answer Booklet. Start each answer on a new page, 3, Do not bring any material into the examination room unless permission is given by the invigilator. 4 Please check to make sure that this examination pack consists of : the Question Paper ‘an Answer Booklet — provided by the Faculty DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 4 printed pages (© Hak Cipta Universiti Teknolog! MARA CONFIDENTIALCONFIDENTIAL 2 CSIDEC 2013/ASC454 QUESTION 1 [Age (Male) | Net Premium 18 and Below 12 19 to 22 15 231025 18 25 to 27 24 27 to 29 25 30 to 33 3H 33 to 35 26 a) The table above shows the table of net premium for each age group. Restructure the table above so that it can be used in VLOOKUP function for cell referencing. Next, create a template for user to calculate the gross premium based on the above table where the inputs are: * Age * Gender * Loading for expenses (percentage) Note: If the gender is female, deduct 3 years from the male's mortality age. The gross premium can be calculated by using this formula: Gross Premium = (1 + loading) x Net Premium (10 marks) b) Variable | Cell F B4 r BS i B6 a 87 c BB The above table shows the variables or inputs needed to calculate the price of a bond. By referring to the above table, write a function in Cell 89 that calculates the price of the bond. Next, in cell B10, determine either the bond is selling at premium or at discount. (10 marks) © Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL, 3 CSIDEC 2013/ASC454 QUESTION 2 ‘Age: Mortality rate: 50 0.0047 51 0.0042 52. 0.0043 53 0.0044 84 0.0045 55 0.0046 56 0.0047 By using a command button, write a Visual Basic program to read the above data and store them into array variables, By using the same command button, develop a table of net premium for a 3-year endowment insurance (4,5) for a person age §0 to 53 on a worksheet starting from cell B2. Prompt the user to insert the interest rate to be used in the calculation by using message box. (20 marks) QUESTION 3 ‘A Bond investor (user) wants to know the accumulated value at the end of each of every year until the end of the term if he reinvests the coupon amount according to the desired reinvestment rate. You are required to design a Bond coupon reinvestment calculator by using VBA in Microsoft Excel with a workable interface. The inputs required from the user are: Face value of the bond Coupon rate of the bond Term Yield rate of the bond Redemption value Reinvestment rate of the coupon ‘The program should calculate and display the cash flow at the beginning of each year and the accumulated value at the end of each year in Microsoft Excel spreadsheet. The program also should display in a label box the cash inflow from the investment over the term, and the total amount of interest earned over the term (20 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL 4 CSIDEC 2013/ASC454 QUESTION 4 Write a user defined function to be used in Microsoft Excel by using Visual Basic programming to calculate the number of years required to achieve desirable amount in the future. The function must use the following assumptions: . Desirable amount: enter by the user . Yearly deposit: enter by the user * Interest rate earned: enter by the user Hint: = NumOfYears(desirable_amount, yearly_deposit,interest_rate) (20 marks) QUESTION 5 a) Write a program that uses For...Next loop to perform the following steps: i) Output all odd integers from 19 to 1 and display the sum of all outputs. ii) Output the even integers from 5 to 29 and display the product of all outputs. (10 marks) b) Write an If... Then...Else instruction that will give a commission of 8% of the monthly premium to an insurance agent for the first 5 years, 7% for the next 5 years, and 3.5% thereafter for as long as the premium is paid. By using an input box, prompt the user to insert the amount of the monthly premium and the number of years of the policy being issued. With this input, calculate the total commission received by the agent from this policy, (10 marks) END OF QUESTION PAPER (© Hak Cipta Universiti Teknologl MARA CONFIDENTIAL,