MATH 320 Practice Test 5

MATH 320 Practice - II- 51.You are given8t=t~1for 2;t~10.For anyoneyear interval betweennandn 1,with 2;n;9 calculatethe

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Unformatted text preview: II-19PRACTICEMULTIPLECHOICETEST 51.You are given8t=t~1for 2:::;t~10.For anyoneyear interval betweennandn+1,with 2 :::;n:::;9, calculatethe equivalentd(2).Theaccumulatedvalueof1attimet,for0:::;t:::;1,isgivenbyaseconddegreepolynomialint.Youare given(i) the nominalrateof interestconvertiblesemiannuallyforthe first halfof the yearis 5% per year, and (ii) the effectiverate of interestfor the yearis4% per year.Find the valueof8.75,Two funds,A and B, start with the same amount.Fund A grows at an annualinterest rate ofi>0 fornyears,and at an annual interest rate ofj>0 for the nextnyears.Fund B growsat an annualinterestrateofk>0 for2nyears.FundA equals1.5 timesFundB afternyears.Theamountsin the two funds are equalafter~71:years.Whichof the followingaretrue?2.,,'(A).021(B)ln(B).023I.j<k<i(C)n-1n(C).025II.k<:i (i+j)(D)_n_n-1(D).027(E).029(A)1&II(B)I&ID(C)II&ID(D)All(E)Noneof A, B, C, DI;~'~.You are given the followingdata on three seriesof payments.~Paymentat end of yearAccumulatedvalue1118at end of year18240200300X360700X+100Y600XY.(A)93(B)99(C)102(D)107(E)111The force of interestat timetis1~O.Calculatea-I(3).(A).76(B).78(C).80(D).82(E).84~••••••••••••.-•••••••••••••••••~(E)704(E)vl.5(E)1944(E)25,811(D)694(D)1866"r/16,955(C)684(C)1753(C)16,787(B)674(B)13,357(B)1614A corporationborrows10,000 for 25 years,at aneffectiveannualinterestrateof 5%.Asinkingfundis used to accumulatethe principalby meansof 25 annualdepositsearninganeffectiveannualinterestrate of 4%.Calculatethe sum of the net amountof interestpaid inthe13thinstallmentand the incrementin the sinkingfund for the ninth year.(A)664Theforceof interestat timetiskt3.Ris the presentvalueof a four-yearcontinuouslyincreasingannuitywhich has a rate of paymentat timetofmt3.CalculateR .(A)13,225CA)1423//IT-206.7.(A)k-Te-4k(B)k-ke-64k(C)ge-4k(E)m(Ilee-64k)Given thati(4)=.04, calculate(Da)68/'(A)1100(B)1109(C)1118(D)1127(E)11369.Ona loan,paymentsof1 are madeat theendof eachone-halfof aninterestconversionperiodfora totaloffiveinterestconversionperiods.Whatistheamountofprincipalincludedin the eighth payment?10.An annuityprovidesfor 30 annual payments.The first paymentof 100 is madeimmediatelyandtheremainingpaymentsincreaseby8% peryear.Interestis calculatedat13.4%peryear. Calculatethe presentvalue of the annuity.11.Johntookouta 2,000,000constructionloan,disbursedto himin threeinstallments.Thefirst installmentof 1,000,000is disbursedimmediately,and this is followedby two500,000installmentsat six monthintervals.Theintereston theloanis calculatedata rateof15%convertiblesemiannuallyand accumulatedto theendof thesecondyear.Atthattimetheloanandaccumulatedinterestwill be replacedby a 30-yearmortgageat12%convertiblemonthly.The amountof the monthlymortgagepaymentfor the first five yearswillbe one-half of the paymentfor the sixth and later years.The first monthlymortgagepaymentis dueexactlytwoyearsaftertheinitialdisbursementoftheconstructionloan.Calculatetheamountof the 12th mortgage...
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This note was uploaded on 11/18/2010 for the course MATH 320 taught by Professor Dr.k during the Spring '10 term at Nevada.

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MATH 320 Practice - II- 51.You are given8t=t~1for 2;t~10.For anyoneyear interval betweennandn 1,with 2;n;9 calculatethe

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