If a and B Are Independent Events and Pr[A] =

question 31

Multiple Choice

If A and B are independent events and Pr[A] = 0.2 and Pr[B] = 0.3, then what is Pr[A and B]?

• A) 0
• B) 0.06
• C) 0.5
• D) 0.6

Calculate minimum sustenance amount from annuities.

Calculate the amount a finance company would pay for conditional sale contracts based on required rates of return.

Calculate the periodic interest rate for different compounding frequencies.

Determine the value of retirement savings plans (RRSPs) considering varying contribution schedules and compounding rates.

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Definitions:

Credit Default Swap

A financial derivative allowing an investor to "swap" or offset the risk of credit loss from the default of a borrower.

Default Risk

The risk that a borrower will not make the contractual interest or principal payments on their debt obligations.

Corporate Bond

A debt security issued by a corporation to raise funding, promising to repay the principal along with interest at specified dates.

TIPS Bond

Treasury Inflation-Protected Securities, a type of U.S. government bond designed to help investors protect against inflation by adjusting the principal value based on changes in the consumer price index.