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Unformatted text preview: Name___..__~__,_._______..___.____~.__,__,__ Math 141 First Midterm Exam Thursday October 12 2006 W I
I
I W... W h—q‘ SHOW YOUR REASONING. YOU NEED NOT COMPUTE NUMERICAL ANSWERS BUT YOU
MUST INDICATE CLEARLY AND UNAMBIGUOUSLY WHAT NUMBERS TO TYPE INTO AN ORDINARY
NUMERICAL CALCULATOR TO GET THE CORRECT ANSWER. IF YOU WRITE AN INCORRECT
NUMERICAL ANSWER YOU WILL LOSE POINTS. I. (20 points.) You deposit $100 at 3% per year. What is the balance at the end of one year if
the interest is compounded monthly? II. (20 points.) You want to save up $3000 f0r a vacation two years from now; Starting at the
end of this month you will make 24 equal monthly deposits into a savings account that pays 7%
interest per year compounded monthly. What is the size of these deposits? III. (20 points.) This problem is the same as problem 11 except that the savings account pays
7% interest per year compounded daily." (Assume that one year =; 360 days and that one month = 30 days.) IV. (20 points.) To solve a certain problem in ﬁnancial mathematics you must evaluate the follow sum: I
0.1 1" 0.1 11 0.1 98
=400 1 — 4 —— — . S (+52) + 00(1+52) + +400<1+52> 'State the geometric series formula and ShOW how use it to evaluate S on a calculator. V. (20 points.) You put $10,000 into an account which earns 10% per year compounded
annually but every year you must pay a 30% tax on the gain. How much is in the account at the
end of the 5th year? (The 30% tax is on the difference between what is in the account at the
beginning of the year and what is in the account at the endof the year.) ...
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 Fall '07
 Meyer
 Savings account, geometric series formula

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