quiz_2_soln - Name: “3; (Surname) (First Name) 1. Find...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the 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%Og-317? 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 1-2“ 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_WWWWgamma-r 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 “weft-l = MW 4 '(H “'9‘ 0i: ,2. : Manx w ml 2 (we) I‘l’b 9‘ a d; ;——(),0fl€)— : 1.577517; a gzflhoJr-D 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‘i-enzm‘ 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/MDU-OI‘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.

Page1 / 4

quiz_2_soln - Name: “3; (Surname) (First Name) 1. Find...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online