This preview shows pages 1–4. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Name: “3; (Surname) (First Name) 1. Find the value at t=6 of $5000 to be paid at time t=12 if a(t) = (1  .06t)'1.‘ (answers to the nearest cent) faoo (59.2 t; 5059 ’f'aé(6}] *" 6‘00 fml’W'Qé {'2}?
mm 2? "9501)?" ' ’ 57—»06 5?; ‘“ ,J" 2. Suppose we have compound interest and an effective monthly interest rate of 0.6%. Find equivalent rates .' i,
d and 6. (answers to 5 significant figures) umsm s» (wallow): mg i1. _
‘02) '7 , _ :1 I
((+1) ; (H'ﬁ' ) "‘7 L’(/.006)..) : ellwzfgg
’ a 'Uz)‘/Z
0):..27. : skim/9 or Mi :(Hlsi
FIN. £7 at .2; #0006542: 69%??? v U7.) 8,: ,Q,\()+)):)1)L()+r)';): [lg/.006
:=~ ?.l?8§ 3. Given that the force of interest is 6‘ = .03/(1 + .09t), find the present value at time 0 of $300 to be paid at time
t = 4. (answers to the nearest cent) 1‘, t eel. {3:051
_ 50 ésﬁe4 ” SD [74.09’6016 h J5’ )0 /+.05£§ &&7 ’ 6 " 6 V 6 ': 6 tweet/4;) _ 6,0,0th 2 e : (#09763); i ‘ "’11?
300m?) t: 300 Game» :1 2%Og317? 4. The nominal rate ofdiscount is 5% convertible quarterly. The annual effective inflation—adjusted rate of interest
(real rate of interest) is 2.11%. Find the annual effective rate of inflation. (answer to 4 significant digits) ’ H; WM“ 1, ; annual e703. rate a? F‘n+€r&+ w I 7:}; ) r; annual 6%? rva al‘ mfmﬂm
) 3‘” anmw/ wman» dct'J’mvfa/ mate 07‘
irrtamf'
A ,. (If) _
a? l+r=lﬂ 154+ ’“30”¢’)¢
. HU' 9‘ {A
w) “9‘ “7"”
z , d )
:7 2+)" 0V V 3 0. "f *7
[+ 5 12“ 3
_.. "‘9"
; "‘ no!
gﬁ V’ ‘l w) : e;
I, 91!)
0V“ L: (1' £5957 ’1 ; a/épzlﬂﬁﬂ :2) v J [Lﬂggfffsfe : 2%?2 5. Sidney borrows $20,000. The loan is governed by compound interest and the annual nominal rate of interest is
6% compounded monthly. Sidney repays $10,000 at v the end of one year, X at the end of two years and $5000
at the end of three years in order to exactly pay off the loan. Find X. (answer to the nearest cent) 10/0510 4W “X "€500 LT): ﬁg”: : agz
[’L
Whammﬂ._.....M»..\§_+WN_WWWWgammar
0 ’2‘ 1% 36 VHO/lﬂ’l’}
4k
'2 —~I Z 11). I?» ~ '/2.
gamer/we) r @M‘WﬂF gazed/mg) 3126.66: \l ID: (Surname) (First Name) Name: I
1. Find the value at t=4 of $5000 to be paid at time t=8 ifa( C
t) = (1  .04t)“. (answers to the nearest cent)  U143 em F / I.
3000 «i» e MOON—.0 (w r,,,§_ . m3
Q55) 75%] Z {Mam 6%) .a “l .5 MW
L/ 'OWU wag/4(a) m 40937267. 2. Suppose we have compound interest and an effective quarterly interest rate of 0.5%. Find equivalent rates ' i, U“ d and 45. (answers to 5 significant figures) 4;;sz :7 If“): mm): 37%
w 1% ,.
W We) 9 “weftl = MW
4 '(H “'9‘
0i: ,2. : Manx w ml 2 (we)
I‘l’b 9‘ a d; ;——(),0ﬂ€)— : 1.577517; a gzﬂhoJrD Z ’fﬁaﬂt/LVT )1: ’76?ng
3 1.901150% 3. Given that the force of interest is 5I = .02/(1 + .08t), find the present value at time 0 of $300 to be paid at time
t = 4. (answers to the nearest cent) '2‘:
1 “5,02.  #06 J) “(3
out) :. SD s36?” g: {#205945 , {F 077806‘; 6 #XAWOVWO
C’. 5 » (—3 : e M+,08t3 most A;
: 64F : 6% it: ()‘}‘108‘b) 300 062%) : 300 {HIOWH} ?‘ z ‘2. $‘igg 4. The nominal rate of discount is 9% convertible monthly. The annual effective inflation—adjusted rate of interest
(real rate of interest) is 6.33%. Find the annual effective rate of inflation. (answer to 4 significant digits) WE Luke”? 2/: awn”? F25}! 0'; I‘h‘ienzm‘ I+3=/ I‘l‘Y‘ ’ Y"; Qr'lﬂbmi Ware «7‘; ,‘r'wﬂbﬁm
v :1 QM/‘lMgJ j}.qj?/c‘(i’fc)'1“££a€q(,7‘ca/ m? y; 17¢??in
l2 “l7
, . _ .ﬂ 016
ai+r=ﬁé 1”” “1’0 732
HR) ) 
UR) «~17» "2‘ a) .
a V Z 771W] ,/ V “I L: m —/2 .r
 ~(, g) s, 2 i t6”‘f€%74
0)” b ’ . [1, '
55‘ “W5? w. a? v
5.05%.. 5,. a...) L Bjé
1.06% a
5. Sidney borrows $20,000. The loan is governed by compound interest and the annual nominal rate of interest is 6% compounded quarterly. Sidney repays $10,000 at . . the end ofone year, Xat the end of two years and
$5000 at the end ofthree years in order to exactly pay off the loan. Find X. (answer to the nearest cent) mm d 0 6A .. 16/
(J : f I ' a
a" 9» r3. "9%
max « «cm a M67 2 0 cf; ?
Qﬂ/MDUOI‘I) « #3420 (.1. was”) uny‘ Smﬂggz’z’CLcﬁ/‘ﬂ .. z 0.0/9 ,1 .. art;
:7 x W 25/752930. )  2206.30 / ...
View
Full
Document
This note was uploaded on 03/30/2012 for the course ACTSC 231 taught by Professor Chisholm during the Spring '09 term at Waterloo.
 Spring '09
 Chisholm

Click to edit the document details