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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. 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. 3. 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. ...
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 Spring '08
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 Math

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