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Test108

# Test108 - MATH/STAT 170 Test 1 To get full credit for a...

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MATH/STAT 170 Test 1, October 23, 2008 To get full credit for a problem you must both check the value that is closest to the correct answer and show work , which means writing down the formulas being used. Correct formula/formulas with an incorrect answer are worth 4 points. A correct answer with incorrect or missing formulas is worth nothing. Each problem is worth 13.5 pts. 1) You receive an award that pays \$1,000 at the beginning of year 0, \$2,000 at the beginning of year 1, and \$3,000 at the beginning of year 2. What is the present value of this award at 5% interest per year? a) 5600 b) 5700 c) 5800 d) 5900 e) 6000 2) Huntington Bank offers an account that pays 3%, compounded daily. Lafayette Bank offers an account with the same annual effective rate, but compounded twice a year. Lafayette Bank’s nominal interest rate is i% per year, compounded twice a year. Find i.

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Test108 - MATH/STAT 170 Test 1 To get full credit for a...

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