University of Illinois at UrbanaChampaign
Department of Mathematics—Actuarial Science Program
Math 210
Instructor Jared Thompson
Theory of Interest
Spring 2006
Homework Assignment #6 (10 points)
Due at the beginning of class on Friday, March 31, 2006
Please use rounding as little as possible, especially when using interest rates.
You may find your
calculator’s memory button(s) to be helpful.
You are encouraged to work in small groups on these problems, but each student must turn in his or her own answer
sheet.
Show all work—enough to show that you understand how to do the problem—and circle your final answer.
Full credit can only be given where answers and approach are appropriate.
Please give answers to two decimal
places, e.g. xx.xx% and $xx,xxx.xx .
1)
Geneva takes out a 10year loan that involves level $500 payments at the end of each
month.
Find the initial amount of the loan (that is, the balance at time 0) if the nominal
rate of interest, convertible semiannually, is 8%.
2)
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This note was uploaded on 09/25/2009 for the course MATH 210 taught by Professor Hubscher during the Spring '08 term at University of Illinois at Urbana–Champaign.
 Spring '08
 Hubscher
 Actuarial Science

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