Assignment 2(2)

Assignment 2(2) - nominal rate of discount compounded...

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System Homepage » Class Homepage » Student Details » Student Assignment Details ActSci 231 W09 : Gradebook Welcome Po-Wei Chuang [ My Profile ] Gradebook Help Logout Maple T.A. - Gradebook http://maple-ta4.math.uwaterloo.ca:8080/mapleta/gradebook/gr. .. 1 of 2 4/6/09 9:04 AM
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Assignment detail for Po-Wei Chuang in Assignment 2: Po-Wei Chuang Login: pchuang Email: pchuang@uwaterloo.ca Student ID: 20260696 Assignments completed: 9 Assignments active: 0 Question Grade 1 An investment of $900 will accumulate to $3,600 after 20 years. Find the sum of the present values of three payments of $9,000 each at the end of 15, 25 and 35 years. Your Answer: No answer Correct Answer: 5568.47 Comment: v = (900/3,600) 1/20 , PV = 9,000(v 15 + v 25 + v 35 ) = 5,568.47 Instructors Comment: 0.0 2 Given the amount function A(t) = 1,100 (1 + 0.17 t), find the effective rate of discount in the 8 th year. Your Answer: 0.07203 Correct Answer: .72e-1 Comment: d 8 = (A(8) - A(7))/A(8) = 0.072 Instructors Comment: 1.0 3 Given a 6% nominal rate of interest compounded daily, what is the equivalent
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Unformatted text preview: nominal rate of discount compounded monthly? Your Answer: 0.06015 Correct Answer: .598e-1 Comment: Instructors Comment: 0.0 4 In 1985, an investor opened an investment account with 1,500 earning simple interest at an annual rate of 10.5%. Four years later, the investor closed the account and invested the accumulated value into a new investment account earning 6.75% compounded annually. Determine the number of years since 1985 need for the balance to reach 3,000. Your Answer: No answer Correct Answer: 9.2433 Comment: 1,500(1+0.105(4))(1+0.0675) (n-4) = 3,000 => n = 9.2433 Instructors Comment: 0.0 5 Given = 8.5%, find the equivalent rate i (2) . Your Answer: 0.08683 Correct Answer: .868e-1 Comment: Instructors Comment: 1.0 Maple T.A. - Gradebook http://maple-ta4.math.uwaterloo.ca:8080/mapleta/gradebook/gr. .. 2 of 2 4/6/09 9:04 AM...
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Assignment 2(2) - nominal rate of discount compounded...

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