Solutions to Extra Problems 3

# Solutions to Extra Problems 3 - ACTSC 231 Extra Problem Set...

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ACTSC 231 Extra Problem Set 3 Solutions 1. 250 ue0a6 a u2212 1 ue0a2 .5 ue0a3 u002b a u2212 1 ue0a2 1 ue0a3 u002b a u2212 1 ue0a2 1.5 ue0a3 u002b a u2212 1 ue0a2 2 ue0a3ue0a7 u003d 250 ue0a4 1 u2212 .03 ue0a2 .5 ue0a3 u002b 1 u2212 .03 ue0a2 1 ue0a3 u002b 1 u2212 .03 ue0a2 1.5 ue0a3 u002b 1 u2212 .03 ue0a2 2 ue0a3ue0a5 u003d 962. 5 AV at time 3 is: 962.50 a ue0a2 3 ue0a3 u003d 962.50/ a u2212 1 ue0a2 3 ue0a3 u003d 962.50/ ue0a2 1 u2212 .03 ue0a2 3 ue0a3ue0a3 u003d 1057.69 2. 4000 u003d 200 a 20| i u002b 100 v 20 a 20| i 2500 u003d 250 v 20 a 20| i ue205 v 20 a 20| i u003d 10 ue205 4000 u003d 200 a 20| i u002b 100 ue0a2 10 ue0a3 ue205 a 20| i u003d 15 150 a 20| i u002b 300 v 20 a 20| i u003d 150 ue0a2 15 ue0a3 u002b 300 ue0a2 10 ue0a3 u003d 5250 3. Using your calculator: 1. Make sure your calculator is in finance mode. (If necessary press [ MODE] until FIN appears in the display) 2. [AC/ON] 3. 12000 [ PV] 4. 36 [ N] 5. 450 [ PMT] 6. [ CPT] [%i] (Note: it will take your calculator about 15 seconds to calculate this) This give us an answer of i ue0a2 12 ue0a3 12 u003d 1.721548845 7. multiply by 12 this gives i ue0a2 12 ue0a3 u003d 20.65858614 8. 20.65858614 [2nd] [ u003e EFF] 12 [ u003d ] i u003d 22.7313669% also i u003d 1 u002b i ue0a2 12 ue0a3 12 12 u2212 1 u003d ue0a2 1.01721548845 ue0a3 12 u2212 1
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