MA 373 S11 Quiz 3 Solutions

MA 373 S11 Quiz 3 Solutions - WWW Math 373 ' (9:) October...

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Unformatted text preview: WWW Math 373 ' (9:) October 5, 2011 1. An 15 year increasing annuity with payments made continuously pays at a rate of 10002‘ at time t. Calculate the present value of this annuity at an annual effective interest rate of 6%. fly?“ {HEB xii» (1 i .le 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 quarter of the second year and continue to increase 10 each year until 250 is paid each quarter of the 25th year. Calculate the present value of these payments at an interest rate of 8%. 5 fl) Ajaaisaae -» gem»!ch ma/WQMW fl: wag! 3. A 5-year continuous annuity makes payments at a rate of 21‘2 at time t. Determine the present value of this annuity using a discount function of 1— 0.02t2. Math 373 Quiz 3 3 October 5, 2011 A 10—year continuous annuity makes payments at a rate of 21‘2 at time t. Determine the present value of this annuity using a discount function of 1—0.02t2. 2. as 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 quarter of the second year and continue to increase 10 each year until 250 is paid each quarter of the 25th year. Calculate the present value of these payments at an interest rate of 6%. gem lac cm 3. An 20-year increasing annuity with payments made continuously pays at a rate of 1000f at time t. Calculate the present value of this annuity at an annual effective interest rate of 6%. @237 “it? W” :m [email protected] @m mm mm “it WW»: m 7 WWW f “ gm (film’sfi ...
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This note was uploaded on 02/26/2012 for the course MA 373 taught by Professor Staff during the Fall '08 term at Purdue.

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MA 373 S11 Quiz 3 Solutions - WWW Math 373 ' (9:) October...

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