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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
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0655 .0640
.0610 .0590 .0580 .0570 2005 __
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——— Nancy invests 4000 on January 1, 1999 in a fund which credits interest using the investment year
method. Calculate the amount that Nancy wili on December 31, 2005. 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.
Payments continue to be level during each year but increase year to year until 230 is paid each
quarter in the 20th year. t The interest rate on the annuity is 6% compounded monthly. Calculate the present value of this annuity. 4. A 12 year continuous annuity pays at a rate of St at time t. Calculate the accumulated value using an annual effective interest rate of 5%. i
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 Spring '08
 Staff
 Math, level monthly payments, Nancy wili

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