Unformatted text preview: values to the nearest 0.0001: (a) 200 a (4) 10 e 6% ; (b) 1200¨ s (12) 20 e 4% . Q5. Compare these four symbols ¨ a n e i , ¨a ( m ) n e i , a ( m ) n e i and a n e i by calculating their values at n = 48, m = 12 and i = 5%. Q6. If ¯ a n e = 6 . 321206 and ¯ s n e = 17 . 182818, then ﬁnd δ and n . Q7. Anita receives a 20-year annuity which make monthly payments in arrear. The monthly payments in the ﬁrst year are all $500 and the payments increase by $10 each year. Find the present value of this annuity, if the annual interest rate is 12% convertible monthly. Q8. Beatrice takes out a $20,000 loan for ten years at an annual interest rate of 6% con-vertible quarterly. The loan is repaid by quarterly payments which start at $ P as the ﬁrst payment and then grow by 10% quarterly. Find P . 1...
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This note was uploaded on 07/13/2011 for the course ACTSC 231 taught by Professor Chisholm during the Winter '09 term at Waterloo.
- Winter '09