MA373 S10 Quiz 4 Solutions

# MA373 S10 Quiz 4 Solutions - QUIZ 4 Math 373 Spring 2010 1...

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Unformatted text preview: QUIZ 4 Math 373 Spring 2010 1. Richard has a car loan that is being repaid with level monthly payments of 500. The interest rate on the loan is 18% compounded monthly. The principal in the 5th payment is 184.39. Calculate the interest in the 35th payment. .(l‘) J? ?I‘Wﬂ’l€u7§s Me. mmorrlw 50936106633 9—3“ er “‘H'wo-ﬂ’; ’Prmctpaﬁ'b AWE‘V‘FO «was so - 3 c -- a u 3 igueﬂ'wf) = 198}; . ii '733! 5 —PJ.' (L0,!) j K .a O . P35 .1 \$290 —28%\§l= 3 a .5 2. You are given the following table: — Year 2000 2001 i 2004 m 2001 _— _-_ —_—_ ———__— i Nancy invests 4000 on January 1, 1999 in a fund which credits interest using the investment year method. Calculate the amount that Nancy will on December 31, 2005. 400 L)().07)(l.0(.‘7b5<l.M6150.06 9X). ocgyyr ugly/.0577) 5 (pr/27.8/ 3. Lexi is receiving an annuity with payments at the end of each quarter for 20 years. Payments‘in the during the first year are 40 per quarter. Payments during the second year are 50 per quarter. v Payments continue to be level during each year but increase year to year until 230 is paid each quarter in the 20th year. The interest rate on the annuity is 6% compounded monthly. Calculate the present value of this annuity. 1,0 30 2:50 9.3 0 I Houoqo we slogogogb ' 9’ 9 a l 9’ ‘a' V W) D’Hlo 717230 annui‘l‘v‘ﬁf 3030 go 20 3,0 30 30 go r V m 30 3o 30 30 SB WW '01) 010 ‘_, + i '7; 12, , ' 7; .lelp773 .piT)‘ Ll “'9 V2" ‘(L\) \2‘4 \ W : mes-i = 015/075/b'5/ O ‘ I {\- )_ (Ni 1") l—< 'IDW‘MWE'S’») (l.ocaic778'2)“1b m, + /0 3 O lco’gojf’ls ‘3': WM ‘ 19/507512? ED 15075 '25 - \ggg gs“+ §%L03.=«5§‘ 99.33 ‘, mam-a em. V mm m V .H . A 12 year continuous annuity pays ata rate of St at time t. c/amuo‘s”) {I‘DL/Q'IQDM’JLIL m a afﬁx—)3 .3 5(3):, on); E: vs IJ-IVW / A}? :- 5“ W” / 5’ Calculate the accumulated value using an annual effective interest rate of 5%. ...
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