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# ica8 - Name 1 131\$“ng Q1 UNIVERSITY OF ILLINOIS AT...

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Unformatted text preview: Name: 1 131\$“ng Q1 UNIVERSITY OF ILLINOIS AT URBANA—CHAMPAIGN Actuarial Science Program DEPARTMENT OF MATHEMATICS Math 210 Prof. Rick Gorvett Theory of Interest Fall, 2008 In—Class Assignment # 8 (2 problems worth 1 point each) Thursday, October 21, 2008 This assignment is open-book, open-note, and you may work together in groups of no more than 4. However, each student must hand in her/his own answer sheet. 1) A 30~year \$250,000 loan involves level amortization payments at the end of each month. Find the outstanding balance on the loan immediately after the 173rd payment, assuming a nominal annual interest rate of 12% convertible monthly. ‘ 2: '3'- I. Be: 25—01mm = R 0.3730.“ > {L 25") 8‘3 15m = {L- a = 219,193.73 sea-v73 .ot mm... 2) A 20-year \$300,000 loan involves level amortization payments at the end of each year. Find the total amount of interest to be paid during the life of the loan, assuming a nominal annual interest rate of 10% convertible quarterly. £= 0.0217)?" = 300,000 7"" R‘Qm; 7-» A: 3éjquaj3 72m. 'me. = 20 'R =- \$23.1}qu ...
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