Solutions to Extra Problems 1 a

Solutions to Extra Problems 1 a - ACTSC 231 Solutions to...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ACTSC 231 Solutions to extra problems 1a 1. a) A (0) = 7 A(t) b) a (t) = A(0) = e:03t c) I7 = A (7) A (6) = 7e:03(7) 7e:03(6) = :2552 :03(7) 7e:03(6) 7 d) i7 = AI(6) = 7e 7e:03(6) = e:03 1 = 3:045% 2. 900 (1 + i) = 900 + 130:41 =) i = 1030:41 1 = 7% 900 5 1000 (1:07) = 1402:55 4 6 3. 10000a 1 (10) = 10000 (1:08) (1:05) = 5484:91 4. 2 4 (2) (4) 1=2 1 = 5:96% a) 1 + i 2 = 1 + i4 =) i(4) = 4 1 + :06 2 b) 1 c) e d) d(4) 4 4 2 1=2 = 1+ d 2 3 (2) i(2) 2 2 2 =) i(2) = 2 e 3 2 :06 2 1 :06 4 2 1 = 6: 14% =1 1+ i( 3 ) 2 2 =) d(2) = 2 1 = 2 3 = 5: 91% () 2 3 = e =) ln 1 + d) d) 1 2 (:06) = 5: 75% 5. 1 a) 1 + i = (1 d) =) i = (1 h i 1 d d d) 1 = (1 dd i = dd (1 b) e = 1 d d d(m) m m 1 ( 1) = (1 e e m m d) 2 = (1 + i) 2 =) d(m) = m 1 =m 1 m m d(m) = d d m1 i(m) m e m =e m m =1 d(m) m c) 1 d d di(m) d= 1+ = d di(m) i(m) m =) d = 1 1+ i(m) m m 1+ = i(m) m 1 m ( m) 1 + i(m) m m1 1 m = 1+ i(m) m m1 m+1 m = 1+ = (1 v d) m+1 m d) v = 1 d =) d = 1 d d v] = 1 dv d = dv [1 1 ...
View Full Document

Ask a homework question - tutors are online