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Unformatted text preview: 1. QUIZ 3
Math 373 Spring 2010 John wants to establish a John'Purdue scholarship that will pay 8000 each year forever with the
first payment made immediately. If an he can invest money in an account earning an annual effective rate of 5%, how much must he
invest now to fund the scholarship. @000 @000 Q0520 W 2. Kelli is repaying a loan of 100,000 with ten level annual payments. The interest rate on the loan is
8% compounded quarterly. Calculate the outstanding loan balance immediately after the 4th payment. ngm L'q3:.08 M0in 5a
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T’Q W N951?) Todd wants to buy a house in five years. He needs a down payment of 35,000 at the end of five
years. Todd deposits X into an account at the beginning of each month for the next five years. The
account earns 9% compounded monthly. Calculate X so that Todd will have 35,000 at the end of 5 years. CLPT' Pm 7") [490: 5‘7 ...
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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 University.
 Spring '08
 Staff
 Math

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