MA373 F15 Homework Chapter 4

# MA373 F15 Homework Chapter 4 - Math 373 Fall 2015 Homework...

• Homework Help
• 3

This preview shows pages 1–2. Sign up to view the full content.

October 1, 2015 Copyright Jeffrey Beckley 2013, 2014, 2015 Math 373 Fall 2015 Homework Chapter 4 Chapter 4 Section 5 1. A 30 year annuity immediate pays 50 each quarter of the first year. It pays 100 each quarter of the second year. The payments continue to increase annually so that the payments in each quarter are 50 higher than the previous year. a. Calculate the present value of this annuity at an annual effective interest rate of 10%. b. Calculate the present value of this annuity at a nominal rate of 10% compounded quarterly. 2. An annuity due makes monthly payments for 15 years. The first payment is 10. Each subsequent payment is 10 larger than the previous payment. In other words, the payment at the start of the second month is 20 and the payment at the start of the third month is 30, etc. Calculate the present value of this annuity using a nominal interest rate of 12% compounded monthly. 3. Alicia is making deposits into her retirement account at the end of every month. During the first year, she deposits 100 each month. During the second year, Alicia deposits 200 each month.

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern