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EGR_102_Lecture_HW_02_Solution-1

# EGR_102_Lecture_HW_02_Solution-1 - i i A F n EGR 102 of 2...

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EGR 102 of 2 pages Lecture HW 02 1 EGR 102 Lecture HW 02 Due at beginning of lecture on Friday, January 27 4 Problems, 4 Points Each, 16 Points Total Name: Solution PID: Lab Section #: Problem 1 (4 pts): If a single deposit of \$6,000 is invested at 5% yearly interest, how much will be accumulated in 8 years? Problem 2 (4 pts): If a single deposit of \$2000 is invested at 4% yearly interest, what equal year-end withdrawals can be made each year for 6 years, leaving nothing in the fund after the 6 th withdrawal? Problem 3 (3 pts): How much will be accumulated in a fund, earning 6% yearly interest, at the end of 4 years if \$750 is deposited at the beginning of each year for the 4 years? 865 , 8 \$ 73 . 8864 \$ ) 05 . 0 1 ( 6000 \$ ) 1 ( 8 n i P F 52 . 381 \$ 1 ) 04 . 0 1 ( ) 04 . 0 1 ( 04 . 0 2000 \$ 1 ) 1 ( ) 1 ( 6 6 n n i i i P A 281 , 3 \$ 96 . 280 , 3 \$ 06 . 0 1 ) 06 . 0 1 ( 750 \$ 1 ) 1 ( 4

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Unformatted text preview: i i A F n EGR 102 of 2 pages Lecture HW 02 2 Problem 4 (4 pts): How much principal will be paid (subtracted from the balance) and interest will be paid in each payment on a \$10,000 loan with a 6 year term at 5% interest? Assume yearly payments. Build a table showing year, interest due, total owed, payment, and balance. First, calculate annual payment: Year Interest Owed Payment Balance 0 \$10,000.00 1 \$500.00 \$10,500.00 \$1,970.17 8529.83 2 \$426.49 8956.32 \$1,970.17 6986.15 3 \$349.31 7335.46 \$1,970.17 5365.29 4 \$268.26 5633.55 \$1,970.17 3663.38 5 \$183.17 3846.55 \$1,970.17 1876.38 6 \$93.82 1970.20 \$1,970.20 0.00 17 . 1970 \$ 1 ) 05 . 1 ( ) 05 . 1 ( 05 . 10000 \$ 1 ) 1 ( ) 1 ( 6 6 n n i i i P A...
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