MA 373 F10 Quiz 4

MA 373 F10 Quiz 4 - prior year until 2500 is paid at the...

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Quiz 4 Math 373 October 13, 2010 1. A loan of 100,000 is being repaid with level annual payments of 13,000 for 10 years. Calculate the principle in the 5 th payment.

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2. A nine year continuous annuity pays at a rate of 70 t at time t. The discount function is .08 t e . Calculate the present value of this annuity.
3. Jenna is receiving quarterly payments for the next 10 years. The payments are 250 at the end of each quarter in the first year. The payments are 500 at the end of each quarter in the second year. The quarterly payments each year increase by 250 over the quarterly payments from the

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Unformatted text preview: prior year until 2500 is paid at the end of each quarter in the 10 year. Calculate the present value of Jenna ’s payments using 0.05 i . 4. Jordan borrows 30,000 and agrees to repay the loan over 11 years with annual payments using the sinking fund method. The annual effective interest on the loan is 9% and the sinking fund earns interest at a annual effective rate of 7.5%. Calculate the interest paid to the bank each year and the annual sinking fund deposit....
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MA 373 F10 Quiz 4 - prior year until 2500 is paid at the...

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