PRMIA Exam 8007 Topic 1 Question 76 Discussion

Actual exam question for PRMIA's 8007 exam

Question #: 76
Topic #: 1

[All 8007 Questions]

The quarterly compounded rate of return is 6% per annum. What is the corresponding effective annual return?

A1.50%

B6%

C6.14%

DNone of the above

Show Suggested Answer

Suggested Answer: B

by Stefanie at Jul 03, 2024, 06:22 PM

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William

8 months ago

Wait, is the Newton-Raphson method the one where you find the middle point? I'm getting my numerical methods mixed up here.

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Dahlia

7 months ago

D) does provide an error bound along with every iteration

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Arminda

7 months ago

C) can be used for continuous but not differentiable functions

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Tyra

8 months ago

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

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Cordelia

8 months ago

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

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Carole

8 months ago

An error bound with every iteration? That would be super useful. I hope the answer is D!

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Inocencia

7 months ago

Victor: Absolutely, having an error bound can give us more confidence in the results we obtain.

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Victor

7 months ago

That's great to know. It really helps in understanding the convergence of the method.

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Felix

7 months ago

Yes, the answer is D! The Newton-Raphson method does provide an error bound with every iteration.

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Sue

8 months ago

It definitely helps in tracking the accuracy of the approximation as you iterate.

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Avery

8 months ago

Yes, you're right! That's one of the advantages of the Newton-Raphson method.

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Shelba

8 months ago

I think the answer is D, it does provide an error bound with every iteration.

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Alease

9 months ago

Actually, the Newton-Raphson method does provide an error bound along with every iteration.

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Natalya

9 months ago

Hmm, I thought it could be used for continuous but not differentiable functions. Guess I'll have to review that part of the material.

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Gilberto

8 months ago

Yeah, it does provide an error bound along with every iteration.

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Sheron

8 months ago

I always thought it was based on Taylor series and uses the first derivative.

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Lynette

9 months ago

I believe the method can be used for continuous but not differentiable functions.

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Orville

9 months ago

I agree with Polly, it makes sense to use the first derivative for finding roots.

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Polly

9 months ago

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

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Brandon

9 months ago

The Newton-Raphson method is definitely based on the Taylor series and the first derivative. I remember learning that in my calculus class.

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Felicitas

8 months ago

It's definitely a powerful tool in mathematics.

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Lonna

9 months ago

I remember using it a lot in my numerical analysis class.

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Shalon

9 months ago

It's a really efficient method for finding roots of equations.

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Isabella

9 months ago

Yes, you're right! The Newton-Raphson method does use the first derivative.

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