Sample Final Solutions - MA/STAT 170 Final, Fall 2009 What...

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MA/STAT 170 Final, Fall 2009 What to study: A. Be able to define/explain all of the “Key Terms” and “Other Important Terms” at B. Be able to define/explain all of the terms appearing in bold in both J&L and Brown, except Brown 2.4 and 2.7, which are not on the test. D. Study the reading Fault vs No-Fault on the web E. Know the parts of the Home Owner’s policy. F. Know the typical automotive coverages. 1) At the end of year 1 I deposit $1,000 into an account that is earning 4% interest compounded annually. At the end of each subsequent year I deposit 2 % less than I did the previous year. Thus, for example, at the end of year 2 I deposit $980 and at the end of year 3 I deposit $960.40. How much do I have after the 40 th deposit? 8 pts See the Numerical Solutions pdf. 2) On Jan . 1, 2009, I won an award that pays $10,000 dollars every year for n years with the first payment immediately. Find n , given that at 3% annual interest, the present value of my award on Jan . 1, 2009 was approximately $ 300,000. 8 pts See the Numerical Solutions pdf. 3) I take out a $400,000, 20 year loan at 6% interest compounded monthly . a. Find my monthly payment (paid at the end of each month). 7 pts See the Numerical Solutions pdf. b. How much do I owe after the 10 th payment? 5 pts See the Numerical Solutions pdf.
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4) What is a fraternal benefit society? Give two legal requirements for a fraternal benefit society to sell insurance. 6 pts A fraternal benefit society is an organization formed for the benefit of its members. To sell insurance: 1. It must sell insurance only to its members. 2.
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This note was uploaded on 04/25/2011 for the course MA 170 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Sample Final Solutions - MA/STAT 170 Final, Fall 2009 What...

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