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Unformatted text preview: QUIZ 1
Math 373 Spring 2010 1. You are given:
a(t) = 1 + 0.01t + 0.0051:2 Calculate the annual effective interest rate during the sixth year which is ilslel. 2. Allison invests 1000 at a simple interest rate of 4%. Kristin invests 1000 at a compound interest rate.
At the end of 25 years, Allison and Kristin have the same amount of money. Calculate the annual effective interest rate earned by Kristin. 3. Matthew's father has agreed to pay him 25,000 as a graduation gift at the end of4 years. At an
annual effective interest rate of 7%, calculate the present value of Matthew’s gift. 4. You are given that the annual rate of interest for both simple interest and for compound interest is
6%. Complete the following table: — Simple Interest Compound Interest ...
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This note was uploaded on 02/05/2012 for the course MA 373 taught by Professor Staff during the Spring '08 term at Purdue UniversityWest Lafayette.
 Spring '08
 Staff
 Math

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