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Unformatted text preview: 1 IE 343 Fall 209 Final Exam Name: _______________________ Student ID: ___________________ IE 343 Practice Final Exam Closed Book, Closed Notes Show all of your work . Your work and answers must be shown on the pages provided. Write your name on all pages in the space provided. For some problems note that no interest tables are required; you are to carry the answer to the point where the equation for the problem is specified –e.g., “1,000(A/P,10%,5)+1,500+200(A/F,10%,5)” and stop here. Your grade on these problems will be based on the correctness of the equations and the clarity of your work leading up to the equations. For the remaining problems, interest tables may be required and will be provided for you to perform your calculations. 2 1) a) What is the annual uniform amount that must be deposited into a savings account that pays 10% compounded annually for the next 20 years in order to accumulate $150,000 at the end of 20 years? The first deposit is made at the end of year 1 and the last deposit is made at the end of year 20. Use the attached table to obtain the exact numerical value. 5 points b) What is the future equivalent worth of 10 end of year payments of $1,000 invested at 10% compounded annually? The first deposit is made at the end of year 1 and the last deposit is made at the end of year 10. Use the attached table to obtain the exact numerical value. 5 points c) What is the present equivalent worth of 10 end of year payments of $4,000 invested at 10% compounded annually? First deposit is made at the end of year 1 and the last deposit is made at the end of year 10. Use the attached table to obtain the exact numerical value....
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This note was uploaded on 02/07/2012 for the course IE 343 taught by Professor Vincent,g during the Spring '08 term at Purdue University.
 Spring '08
 Vincent,G

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