SmpFinalNumericSolns

SmpFinalNumericSolns - (3) (3) (5) (5) O O O O (4) (4) (1)...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (3) (3) (5) (5) O O O O (4) (4) (1) (1) O O O O (2) (2) (7) (7) O O O O (6) (6) O O O O O O O O O O 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 40th deposit? j d 1.04; jj d .98; P d 1000 j := 1.04 jj := 0.98 P := 1000 A = P $ j 39 C jj $ P $ j 38 C jj 2 $ P $ j 37 C ... C jj 39 $ P Error, invalid sum/difference A = P $ j 39 C jj $ P $ j 38 C jj 2 $ P $ j 37 C ... C jj 39 $ P = jj 39 $ P $ j jj 39 C j jj 38 C ... C 1 Error, invalid sum/difference = jj 39 $ P $ j jj 39 C j jj 38 C ... C 1 Ans d jj 39 $ P $ j jj 40 K 1 j jj K 1 Ans := 72588.67017 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...
View Full Document

Page1 / 2

SmpFinalNumericSolns - (3) (3) (5) (5) O O O O (4) (4) (1)...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online