McL 151 Assign 6 - supported by complete workings. [5...

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1 SCORE : /18 NAME : ___________________________ STUDENT NUMBER : _______________ Math 151 A03 & A04 Assignment #6 DUE: Wednesday, March 31st, 2010 At the START of CLASS – NO EXCEPTIONS ! *** UNSTAPLED ASSIGNMENTS WILL NOT BE ACCEPTED*** ANSWERS ALONE WILL EARN YOU NO CREDIT. ALL RELEVANT WORKINGS MUST BE SHOWN IN FULL. COMPLETE EACH QUESTION AS IF YOU WERE PRESENTING YOUR SOLUTION IN THE CONTEXT of an EXAM. ------------------------------------------------------------------------------------------------------------------------------ 1. I have $5000 to invest and my intention is to leave it untouched for four years. Option A : Go with the advertised nominal interest rate of 5%. Option B : Go with the promise of compound interest on the basis of a daily conversion period at a stated rate of 4.25%. a) If my goal is to accrue as much money as possible by the end of the four year period which option should I select? Circle A or B below as appropriate and ensure that your choice is
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Unformatted text preview: supported by complete workings. [5 Marks] Option A Option B b) What is the effective rate of interest for Option B? [2 Marks] ______________________________ 2 2. Hank's personal goal is to have saved $2.5 million dollars by the end of the next twenty-five years. His bank manager has offered him 4% compounded semi-annually. What's the all-important present value which will allow Hank to meet his personal goal? [2 Marks] _____________________________ 3. The following matrix is presented with the states in the following order: 1, 2, 3, 4 & 5 .7 .2 .1 1 1 1 .3 .2 .4 .1 a) Reorganise it so that the absorbing states are listed first. [3 Marks] b) Give I for the Absorbing States [1 Mark] c) Give (I-S) [All workings must be shown for full credit.] [2 Marks] d) Give the inverse of (I S). [All workings must be shown for full credit.] [3 Marks]...
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This note was uploaded on 01/15/2011 for the course MATH 151 taught by Professor Barone during the Spring '09 term at University of Victoria.

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McL 151 Assign 6 - supported by complete workings. [5...

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