Interest Rate in Pension Plan Premium Calculation

This research aims to analyze the relationship between the interest rate relationship is inversely proportional to the amount of the premium on the pension plan. The method used is to measure several variables, among others FSL (Future Service Liability), PVFSAL (Present Value Future Salary), PR (Pension Rate) and Premiums. Calculation, life annuity uses actuarial assumptions, one of which is the interest rate assumption, if the assumptions used are not in accordance with the actual conditions, then what happens is excessive payments or deficient payments. The interest rate has an influence in the process of calculating the defined benefit pension plan premium. Using the assumption of different interest rates (11%, 12 % and 13%), it is found that the interest rate relationship is inversely proportional to the amount of the premium. The results of this study are FSL, PVFSAL, PR and Premiums for the interest of 11%, 12% and 13% (participants aged 25 years) as follows 720,187.97; 554,000,24; 430,570.07 (FSL in Rupiah); 27,155,187.70; 24,922,770,59; 23,002,699.40 (PVFSAL in Rupiah); 2.6521; 2.2229; 1.8718 (PR in%) and 55,535.38; 46,546.85; 39,196.00 (Premiums in Rupiah)The higher the interest rate, the smaller the pension premium and vice versa

Application of Four-Rate Formula and Exchange Rate Formula to demonstration of single currency with different value and interest rate

Putting the theory of price system on the relationship among price, wage, labor time, interest rate and GNP (or GDP), four main variables in economics, Four-Rate Formula and Exchange Rate Formula are created (Xiaozhong Zhai 2003). Two formulas applying to analyses of economy and calculation can show some valuable data to macroeconomics, economist and policymaker. They can produce a proof to demonstrate that single currency, for example, single European currency with different value and interest rate in different conditions and regions, can not certainly benefit price stability, sound public finances, low interest rates, incentives for growth, investment and employment. Two formulas are very simple, practical and easy to deal with the complex phenomenon in economy. Exchange Rate Formula has an immediate signification in the international trade economy.wage, price, GNP, interest rate, Four-Rate Formula and Exchange Rate Formula

PERHITUNGAN SUKU BUNGA EFEKTIF UNTUK PENENTUAN ALTERNATIF PEMBIAYAAN KENDARAAN MOTOR PADA LEASING DAN BANK DENGAN METODE INTERPOLASI LINIER (Studi Kasus Harga Sepeda Motor Honda Beat Injeksi Terdaftar Bulan September 2014)

Imposition of interest rates by the bank and leasing in providing credit is different. The interest rate usually not included in the brochure loan installments. The calculation of the interest rate can be calculated using the flat rate and the effective interest rate. In the calculation of the effective interest rate can be performed using linear interpolation. Determination of the motorcycle financing alternative most favorable to the customer, can be seen from the lowest interest rates charged. The results of the case study Honda Beat injection prices listed September 2014 on credit motorcycle through leasing Central Sentosa Finance (CSF), leasing Adira Multifinance (Adira) and credit through Bank Rakyat Indonesia showed the lowest interest rate on the lease Central Sentosa Finance (CSF). In addition to low interest rates charged are other benefits that the filing procedures quickly and without collateral (guarantee). Keywords : Flat Interest Rate, Effective Interest Rate, Linear Interpolation, Leasing, Ban

Five Weeks in the Life of the Pound: Interest Rates

Yields to maturity of a set of nominal and index linked gilts are used to obtain estimates of the term structures of nominal and real interest rates. These allow calculation of the term structures of nominal and real interest rates. These also allow calculation of expected inflation. The estimation is performed for a period of five weeks including the date of sterling's exit from the ERM. We look at the macroeconomic consequences of the shift in the exchange rate regime as implied by the behaviour of financial markets, and how those markets incorporate new information.

A straightforward analytical calculation of the distribution of an annuity certain with stochastic interest rate.

Starting from the moment generating function of the annuity certain with stochastic interest rate written by means of a time discretization of the Wiener process as an n-fold integral, a straightforward evaluation of the corresponding distribution function is obtained letting n tend to infinity. The advantage of the present method consists in the direct calculation technique of the n-fold integral, instead of using moment calculation or differential equations, and in the possible applicability of the present method to varying annuities which could be applied to IBNR results, as well as to pension fund calculations, etc.Distribution; Annuities; Processes; Evaluation;

Perhitungan Suku Bunga Efektif Untuk Penentuan Alternatif Pembiayaan Kendaraan Motor Pada Leasing Dan Bank Dengan Metode Interpolasi Linier (Studi Kasus Harga Sepeda Motor Honda Beat Injeksi Terdaftar Bulan September 2014)

Imposition of interest rates by the bank and leasing in providing credit is different. The interest rate usually not included in the brochure loan installments. The calculation of the interest rate can be calculated using the flat rate and the effective interest rate. In the calculation of the effective interest rate can be performed using linear interpolation. Determination of the motorcycle financing alternative most favorable to the customer, can be seen from the lowest interest rates charged. The results of the case study Honda Beat injection prices listed September 2014 on credit motorcycle through leasing Central Sentosa Finance (CSF), leasing Adira Multifinance (Adira) and credit through Bank Rakyat Indonesia showed the lowest interest rate on the lease Central Sentosa Finance (CSF). In addition to low interest rates charged are other benefits that the filing procedures quickly and without collateral (guarantee)

Pricing of Defaultable Securities under Stochastic Interest

We reduce the problem of pricing continuously monitored defaultable securities (namely, barrier type options, corporate debts) under a stochastic interest rate framework to calculations of boundary crossing probabilities (BCP) for Brownian Motion (BM) with stochastic boundaries. For the case when the interest rate is governed by linear stochastic equation (Vasicek model) we suggest a numerical algorithm for calculation of BCP based on a piece-wise linear approximation for the stochastic boundaries. We also provide an estimation for a rate of convergence of the suggested approximation as a function of number of nodes and illustrate the results by numerical examples.

THE LONG-RUN DETERMINANTS OF INVESTMENT: A DYNAMIC APPROACH FOR THE FUTURE ECONOMIC POLICIES

Investment is the sum of the purchases on newly produced capital, changes in business inventories referred to as inventory investment, and the purchases of new residential housing. The work covered by this study aims to identify the model that presents, in the best possible way, the method of investment’s calculation and to determine the factors of influence. In the first part, the investment is analyzed as a linear function dependent on the interest rate; and the second part implies a new model for determining long-term investments, but also an identification of the measures that would lead to increased investments.investment, interest rate, tax rate, fiscal policy

Optimal Monetary Policy with Asymmetric Targets

We investigate the derivation of optimal interest rate rules in a simple stochastic framework. The monetary authority chooses to minimise an asymmetric loss function made up of the sum of squared components, where the monetary authority places positive weight on squared negative (positive) deviations of output (inflation) and zero weight on squared positive (negative) deviations. Recent approaches to monetary policy under asymmetric preferences have emphasised the adoption of a linear exponential (linex) preference structure. This paper presents a new and different analytic methodology that is based on the explicit calculation of semi-variances. This approach can be used to derive precise coefficients of the optimal interest rate rules. We derive optimal interest rate rules based on two different informational assumptions. In the first case, which we call a fixed interest rate rule, the monetary authority knows only the structure of the economy and the variance of sectoral shocks so that interest rates must take a constant value. In the second case, which we call a flexible interest rate rule, the monetary also has access to additional information in that it can observe the contemporaneous inflation rate. In this second case, we restrict our analysis to the class of linear interest rate rules. The more standard approach in the literature derives optimal monetary policy rules using symmetric loss functions, where monetary policy is designed to minimise the sum of squared components. We also compare optimal interest rate rules under both symmetric and asymmetric loss functions.Monetary Economics; Interest Rate Rule; Inflation Target; Output Target; Asymmetric Loss Function; One-sided Target; Linex Preferences; Semi-Variance; Symmetric Loss Function.

Budget Issues: Treasury's Interest Rate Calculation Changes

Correspondence issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO reported on the Department of the Treasury's decision to change the calculation of the interest rates used since 1980 to determine the investment returns for a number of government trust funds, including Social Security and Medicare, focusing on: (1) how and why Treasury changed its rules for calculating interest rates in 1980 and 1998; (2) the effects of these changes on the unified budget and on the financial status of Social Security and Medicare trust funds; and (3) what other trust funds were affected by Treasury's decision.