Chapter 3 Section 2
1.
(S12HW) Calculate the present value of an annuity that pays 1000 at
the end of each year for 10 years using an annual effective interest rate
of 8%.
2.
(S12HW) Calculate the present value of an annuity that pays 100 at the
end of each month for 10 years using a nominal interest rate of 6%
compounded monthly.
3.
(S12HW) Calculate the present value of an annuity that pays 100 at the
end of each month for 10 years using an annual effective interest rate of
6%.
4.
(S12HW) Calculate the accumulated value of an annuity that 50 at the
end of each month for 10 years using an annual effective interest rate of
8%.
5.
(S08Q2) James is buying a house. To help pay for the house, James
takes out a mortgage loan of 60,000. The mortgage is to be repaid with
monthly payments for 30 years. The interest rate on mortgage is 7%
compounded monthly. Calculate James’s monthly mortgage payment.
6.
(S12HW) Omar invests 2500 at the end of each year in an account
which earns a nominal interest rate of 5% compounded quarterly.
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 Spring '08
 Staff
 Math, Interest, Mortgage loan

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