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 openbook, opennote, 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 seav73 .ot mm... 2) A 20year $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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 Fall '08
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