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MA373 S11 Quiz 3-1

# MA373 S11 Quiz 3-1 - 0.025 0.023 0.022 2010 2007 0.026...

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Math 373 Spring 2011 Quiz 3 March 1, 2011 1. Elaine is repaying a loan of 55,000 with annual payments of 6000 plus a smaller final payment. The annual effective interest rate on the loan is 7%. Calculate Elaine’s smaller final payment.

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2. Bryce invests X in an account on January 1, 2002. The account credits interest using the investment year method. On December 31, 2009, Bryce has 10,000 in the account. You are given the following interest rates: Year 1 Year 2 Year 3 Year 4 Portfolio Year 2000 0.060 0.058 0.056 0.054 0.050 2004 2001 0.055 0.052 0.050 0.047 0.045 2005 2002 0.050 0.048 0.045 0.042 0.040 2006 2003 0.045 0.042 0.039 0.037 0.035 2007 2004 0.040 0.036 0.032 0.029 0.027 2008 2005 0.035 0.032 0.030 0.028 0.025 2009 2006 0.030 0.027

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Unformatted text preview: 0.025 0.023 0.022 2010 2007 0.026 0.024 0.023 0.022 2008 0.023 0.022 0.021 2009 0.021 0.020 2010 0.019 Calculate X. 3. Katy is receiving an annuity immediate with quarterly payments for the next 20 years. The quarterly payments in the first year are 1000 per quarter. The quarterly payments in the second year are 2000 per quarter. The quarterly payments in the third year are 3000 per quarter. Payments continue to increase in the same pattern until payments of 20,000 per quarter are made in the 20 th year. Calculate the prese nt value of Katy’s annuity at 8 % compounded quarterly. 4. A continuous 10-year annuity pays at a rate of 400t at time t. Calculate the present value of this annuity at an annual effective rate of interest of 10%....
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MA373 S11 Quiz 3-1 - 0.025 0.023 0.022 2010 2007 0.026...

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