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Unformatted text preview: hﬂaﬂ1373 (luiz 3 Spﬁng2012 February 28, 2012 1. You are given the following table of interest rates: } Year 1 Year2 Year 3 Year 4 Year 5 Portfolio l Year
[email protected] .0850 .0825 .OSOO—I .0780 .0760 .0730 2000
1996 .0825 .0800 .0775 .0755 .0735 .0705 2001
1997 .0800 .0775 .0750 .0730 .0710 .0680 2002
1998 .0750 .0725 .0071 .0690 .0670 .0650 2003
1999 “W00 .0675 l .0655 .0640 .0635 .0610 4 2004ﬂ
2000 .0650 .0630 .0610 .0590 _‘ .0580 2005
2001 .0600 .0575 .0560 .0540
2002 .0550 .0530 .0510 .0500
2003 .0500 .0480 .0490 .0500
2004 .0450 .0470 .0495 J_.0520
2005 .0500 .0535 .0550 .0575_J
2006 .0550 .0575 .0600
2007 ED .0620
2008 .0650 l I Anthony invests P on January 1, 1999 in a fund that uses the investment year method. On
Anthony has 50,000. M Determine P. *p i l .0750.DQ75Xl.0(655>(lOWY $1 3.2. 373.98 ).063§>ll.0®ll.o5rﬁ 5’” 5Q? a Q Cale is the beneficiary of a trust. He will receive annuity payments for the next 30 years. The payments are at the end of the month.The monthly payments during the first year
m will be 100 each month. The monthly payments during the second year will be 200 each month. The monthly payments in the third year will be 300 each month. This pattern will continue until
monthly payments of 3000 are made each month during the 30th year. Calculate the present value of this annuity at an annual interest rate of 9%. 593
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ﬂﬁamt“[email protected] We loo 'o,007§@?3%% a; )14)ooo.9l% 3. Blake is repaying a loan of 100,000 with annual payments of 11,000 plus a smaller drop
payment. The annual effective interest rate on the loan is 6%. Determine the drop payment. @V :3: /QQ¥ QCLDQ Math 373
Quiz 3
Spring 2012 February 28, 2012 1. Cale is the beneficiary of a trust. He will receive monthly annuity payments for the next 30
years. The payments are at the earliof the month. The monthly payments during the first year
will be 100 each month. The monthly payments during the second year will be 200 each month.
The monthly payments in the third year will be 300 each month. This pattern will continue until monthly payments of 3000 are made each month during the 30th year. Calculate the present value of this annuity at an annual interest rate of 8%. 009 G <3 «.3 00‘39 a 0099 '9 009 G‘QQG 0 )3, ﬁg
83? WW “’4’ i
l 2. Blake is repaying a loan of 100,000 with annual payments of 12,000 plus a smaller drop
payment. The annual effective interest rate on the loan is 6%. Determine the drop payment. 3. You are given the following table of interest rates: Year 1 erarZ Year 3 7—Year 4ﬂq—Year 5 “Portfolio Year 1995 .0850 .0825 .0800 .0780 .0760 .0730 2000
1996 .0825 .0800 13775 .0755 .0735 .0705 2001 1997 .0800 .0775 0750—10730 7.0710 .0680 J_2002 ”T 1998 .0750 .0725 .0071 .0690 .0670 Jr.0650 2003
1999 .0700 .0675 _+ .0655 £640 .0635 .0610 2004 1
2000 .0650 .0630 .0610 .0590 .0580 .0570 2005
2001.; .0600 .0575 .0560 .0540 T0530 __J 0520““1 2006
2002 .0550 .0530 iosm .0500 .0510 .0525 ‘1’ 2007 L2003 .0500 .0480 .0490 .0500 I_.9515 .0540 2008 2004—‘1 .0450 .0470 .0495 .0520 .0550 j i 2005 .0500 .0535 .0550 .0575 ;
13001. .0550 .0575 .0600 _i f_ , 2007 .0600 .0620 j 2008 .0650 _1 J Anthony invests P on January 1, 2001 in a fund that uses the investment year method. On
December 31, 2007, Anthony has 50,000. Determine P. i p 0.01%» i .oS'ZéD/i.DELyiﬂsiibhiOSﬂ/OSZXLOSESﬁ) 1 .2309
W ? .4 3 4802.05?“ Math 373
Quiz 3
Spring 2012 February 28, 2012 1. Blake is repaying a loan of 100,000 with annual payments of 13,000 plus a smaller drop
payment. The annual effective interest rate on the loan is 6%. Determine the drop payment. 3% 2‘: NSC)! mac; ﬂéﬁéneg 093W wattage? m
we g/ 7 “7 5 t it t 5 l ’ ‘0 Q “3*” 2. You are given the following table of interest rates: Year 1 Year2 Year 3 Year 4 Year 5 Portfolio Year 1995 .0850 .0825 .0800 .0780 .0760 .0730 2000
1996 0825—“7—0800 .0775 .0755 .0735 .0705 2001
1997 .0800 .0775 .0750 .0730 _1 .0710 .0680 _2_002
1998 .0750 .0725 .0071 .0690 .0670 .0650 2003
1999 .0700 .0675 .0655 .0640 .0635 .0610 2004
2000 ‘6 .0650 .0630 .0610 .0590 .0580 r3570 “”1 L2005
r2001 .0600 0575—I .0560 .0540 70530 .0520 \l’ 2006
2002 .0550 .0530 .0510 #0506 .0510 :L'Eifj's'zsm 2007
2003 .0500 .0480 .0490 .0500 .0515 .0540 2008
2004 .0450 .0470 .0495 .0520 .0550 2005 .0500 .0535 .0550 110575 _l_ 2006 .0550 .0575 .0600 2007 .0600 .0620 2008 .0650 _ _' Anthony invests P on January 1, 2000 in a fund that uses the investment year method. On
December 31, 2006, Anthony has 50,000. Determine P. pp 6. ‘ 'QQgXi'DQﬂl n00l>éla059>0ﬂf§§><ﬁ@557)<//Q§::§> 1:; 5%; CK) C? W ? 33180108» Cale is the beneficiary of a trust. He will receive monthly annuity payments for the next 30 years. The payments are at the ﬂof the month. The monthly payments during the first year
will be 100 each month. The monthly payments during the second year will be 200 each month.
The monthly payments in the third year will be 300 each month. This pattern will continue until monthly payments of 3000 are made each month during the 30th year. 0
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Calculate the present value of this annuity at an annual interest rate of 6%. g? g {(3%) t?
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