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Solutions to Extra Problems 4 b

# Solutions to Extra Problems 4 b - 5& 1 = 4 0524182 3 j =...

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ACTSC 231 Solutions to Problem Set 4 b 1. a) Jan 1, 2003-May 8, 2003 128days Jan 1, 2003- July 1 2003 182 days Price on Jan 1, 2003 40 a 34 j 3 : 5% + 1000 (1 : 035) 34 = 1098 : 5034 Prince on May 8, 2002 1098 : 5034 (1 : 035) 128 182 = 1125 : 41 b) Apr. 1-Apr. 17 16 days Apr. 1-Oct 1 183 days price on Apr. 1, 2003 125 a 27 j 3% + 5000 (1 : 03) 27 = 4541 : 8242 price on Apr. 16, 2003 4541 : 8242 (1 : 03) 16 183 = 4553 : 58 c) Apr. 1-June 10 70 days Apr. 1-Oct 1 183 days price on Apr. 1, 2003 300 a 37 j 2 : 5% + 10500 (1 : 025) 37 = 11398 : 3994 price on June 10, 2003 11398 : 3994 (1 : 025) 70 183 = 11506 : 57 2. a) P 1 = 200 a 30 j 1 : 75% + 10000(1 : 0175) 30 = 10579 : 65 P 2 = 200 a 23 j 1 : 625% + 10000(1 : 01625) 23 = 10714 : 88 Using your calculator: 10714.87834 [FV] 10579.64623 [PV] 7 [N] 200 [PMT] [CPT] [%i] = >j = i (2) 2 = 2 : 062037735% = ) i (2) = 4 : 12% b) j = i (2) 2 = 1 + i (12) 12 ± 12 2 1 = ² 1 + : 02 12 ³ 6 1 = 1 : 0041761% AV after 3.5 years 200 s 7 j 1 : 0041761% = 1442 : 89 10579 : 65 (1 + i ) 3 : 5 = 1442 : 89 + 10714 : 88 = ) i = ² 1442 : 89+10714 : 88 10579 : 65 ³ 1 3 :

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Unformatted text preview: 5 & 1 = 4 : 0524182% 3. j = 6% 2 = 3% r 1 = 2 r 2 P 1 = 100 + (100 r 1 & 100 j ) a n j j = 100 + (200 r 2 & 3) a n j 3% P 2 = 100 + (100 r 2 & 3) a n j 3% P 1 + P 2 = 200 = ) 200 + (300 r 2 & 6) a n j 3% = 200 (1) P 1 & P 2 = 16 = ) 100 r 2 a n j 3% = 16 = ) a n j 3% = 16 100 r 2 (2) sub (2) in (1) = ) 200 + (300 r 2 & 6) 16 100 r 2 = 200 = ) 300 r 2 & 6 = 0 = ) r 2 = : 02 = ) r 1 = 2 ( : 02) = : 04 4. 1250 = 1000 + (30 & 1000 j ) a 2 k j j (1) 1050 = 1000 + (25 & 1000 j ) a 2 k j j (2) (1) & (2) = ) 200 = 5 a 2 k j j = ) a 2 k j j = 40 1 sub into (1) = ) 1250 = 1000 + (30 & 1000 j ) 40 = ) 250 = 30 (40) & 40000 j = ) j = 30(40) & 250 40000 = : 0237 5 = ) i (2) = 2 j = 2 ( : 02375) = 4 : 75% 2...
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Solutions to Extra Problems 4 b - 5& 1 = 4 0524182 3 j =...

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