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PRMIA Exam 8002 Topic 3 Question 84 Discussion

Actual exam question for PRMIA's 8002 exam

Question #: 84
Topic #: 3

[All 8002 Questions]

You invest $2m in a bank savings account with a constant interest rate of 5% p.a. What is the value of the investment in 2 years time if interest is compounded quarterly?

A$2,208,972

B$2,210,342

C$2.205,000

DNone of them

Show Suggested Answer

Suggested Answer: B

by Harrison at Jul 08, 2024, 11:42 PM

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Regenia

8 months ago

Wait, wait, wait... the Newton-Raphson method doesn't involve any Newtons at all? I'm disappointed, I was hoping for a method named after a fruit salad.

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Mammie

7 months ago

C) can be used for continuous but not differentiable functions

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Antonio

7 months ago

B) is based on finding a middle point between left and right end of the search interval

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Gerry

7 months ago

A) is based on Taylor series and uses the first derivative

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Avery

8 months ago

I heard that it does provide an error bound along with every iteration.

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Shakira

8 months ago

I think it can be used for continuous but not differentiable functions.

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Lonny

8 months ago

Actually, I believe it is based on Taylor series and uses the first derivative.

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Rosendo

8 months ago

Haha, finding the middle point? That's like asking a baker to bake a square circle. Option B is the way to go, no doubt.

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Zack

7 months ago

Definitely, it's all about that first derivative.

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Kattie

8 months ago

I agree, the Newton-Raphson method is based on Taylor series and uses the first derivative.

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Noble

8 months ago

I think option B is the best choice.

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Avery

9 months ago

Ooh, an error bound? Sign me up! I love that kind of mathematical precision.

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Jettie

8 months ago

B) is based on Taylor series and uses the first derivative

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Cherri

8 months ago

A) is based on finding a middle point between left and right end of the search interval

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Fidelia

9 months ago

I think the Newton-Raphson method is based on finding a middle point between left and right end of the search interval.

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Isabelle

9 months ago

I don't know, option C seems kind of sketchy to me. I thought the Newton-Raphson method required differentiable functions.

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Xuan

9 months ago

The Newton-Raphson method is definitely based on Taylor series and the first derivative. That's the real deal!

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Graham

8 months ago

Definitely a useful tool in numerical analysis.

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Myra

8 months ago

I love how it converges quickly to the solution.

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Judy

8 months ago

It's a powerful method for finding roots of equations.

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Ivette

9 months ago

Yes, you're right! The Newton-Raphson method is indeed based on Taylor series and the first derivative.

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