MA373 F11 Quiz 2-2

MA373 F11 Quiz 2-2 - transaction. 2. Kalli invested 50,000...

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Quiz 2 Math 373 September 20, 2011 1. Daniel loans Qian 15,000. Qian agrees to repay the loan with three annual payment. The first payment is 7000, the second payment is 6000, and the last payment is 5000. Daniel reinvests each loan repayment at an annual effective interest rate of 8%. a. Calculate the Qian’s annual rate of interest on the loan. b. Using the bottom line approach, determine Daniel’s annual effective yield on this
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Unformatted text preview: transaction. 2. Kalli invested 50,000 in an account three years ago. One year ago, the account had a balance of 120,000 and Kalli withdrew $50,000. Today, Kalli has 40,000 in the account. Determine the annual effective time weighted return earned by Kalli on this account....
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MA373 F11 Quiz 2-2 - transaction. 2. Kalli invested 50,000...

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