Test of Financial Mathematics, January 27th, 2015

Name:......................................Surname:................................. Matriculation number:........................

1. Study the definition of the following quadratic form on R3 : q(x, y, z) = x2 + 5y 2 + z 2 − 2xy − 4yz;

2. Determine the nature of the stationary points of the following function: f (x, y) = x(x2 − y);

3. Determine (in the exponential regime) the six-months interest rate i[2] corresponding to the force of
interest δ = 0.05;

4. The amortization of an initial debt amounting to 10000 euros is made by means of the payment of
40 constant instalments to be paid every 3 months (the first is due just after 3 months). Determine
the constant instalment if the 3 months interest rate i[4] is equal to 2%.

5. The amortization of a debt of 1000 euros is made by means of the payment of 10 constant instalments
paid at the end of each year (the first is paid just after one year). Determine the value of the debt
just after 3 years in the regime of the compound interest with the annual interest rate i = 3%.

6. Let A be subset of Rn . Then a point x0 ∈ Rn is said to be :

(a) a boundary point of A if there exists a ball Br (x0 ) centered at x0 containing both points of A
and of the complement of A;
(b) an interior point of A if every ball Br (x0 ) centered at x0 is contained in A;
(c) an accumulation point of A if there exists a ball Br (x0 ) centered at x0 containing infinitely
many points of A;
(d) none of the previous assertions is true.

7. Let q(x) be a quadratic form on Rn and let A be the symmetric matrix associate to q(x). Then

(a) q(x) is positive definite if all the principal minors of A are nonnegative;
(b) q(x) is indefinite of sign if det(A2 ) < 0;
(c) q(x) is negative definite if det(A1 ) < 0;
(d) none of the previous assertions is true.

8. Consider the regime of the linear interest with annual interest rate i. Then the interest generated by
the investment of a capital C from 0 to a time t is

(a) I(t) = Ci;

(b) I(t) = Cit;
(c) I(t) = C[it − 1];
(d) none of the previous assertions is true.

9. Consider the regime of the compound interest and let δ be the force of interest. Then

(a) eδ = 1 − i;
(b) log(1 + δ) = i;
(c) eδ = 1 + i;
(d) none of the previous assertions is true.

10. Consider the following assertions.

(a) The regime of the commercial discount does not satisfy strict monotonicity;
(b) The regime of the compound interest does not satisfy time divisibility;
(c) The regime of the linear interest satisfies time divisibility;
(d) none of the previous assertions is true.