MA 373 F10 Quiz 3

MA 373 F10 Quiz 3 - The amount of the loan is 20,000 The...

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Quiz 3 Math 373 September 23, 2010 1. Adam has won the lottery! He will receive 20 annual payments of 100,000 beginning today. Adam takes each payment and invests it at an annual effective interest rate of 8%. How much will Adam have at the end of 20 years?
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2. Faye borrows 1000 from Yiyan and agrees to repay the loan with 3 annual payments of 400. Yiyan reinvests each payment from Faye at an annual effective interest rate of 6%. Calculate Yiyan’s annual yield rate when reinvestment is considered.
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3. Andrea takes out a loan to buy a new car.
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Unformatted text preview: The amount of the loan is 20,000. The loan will be repaid with level monthly payments of 468.46 for n months. The interest rate on the loan is an annual effective interest rate of 7%. Calculate n. 4. Jing invests 50,000 in a fund on January 1, 2008. On June 15, 2008, the fund is only worth 40,000. Jing invests another 20,000 at that time. On December 1, 2009, the fund is worth 90,000 prior to a withdrawal of 10,000 by Jing. On January 1, 2010, the fund is worth 100,000. Calculate Jing’s annual time weighted return (i TW )....
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MA 373 F10 Quiz 3 - The amount of the loan is 20,000 The...

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