MA373 F11 Quiz 3-1

MA373 F11 Quiz 3-1 - quarter of the second year and...

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Math 373 Quiz 3 October 5, 2011 1. An 15 year increasing annuity with payments made continuously pays at a rate of 1000 t at time t . Calculate the present value of this annuity at an annual effective interest rate of 6%.
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2. Minsung is receiving an annuity that makes payments at the end of each quarter for 25 years. The payments are 10 during each quarter of the first year. The payments are 20 during each
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Unformatted text preview: quarter of the second year and continue to increase 10 each year until 250 is paid each quarter of the 25 th year. Calculate the present value of these payments at an interest rate of 8%. 3. A 5-year continuous annuity makes payments at a rate of 2 2 t at time t. Determine the present value of this annuity using a discount function of 2 1 0.02 t ....
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MA373 F11 Quiz 3-1 - quarter of the second year and...

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