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Unformatted text preview: % Name: ID: (Surname) (First Name) 1. Stuart wishes to have $15,000 to buy a used car three years from now. He plans to accomplish this, through an
account with a nominal interest rate of 3% compounded monthly, by depositing $300 at the end of each month
during the first year, and Q at the end of each month during the next two years. What is the smallest Q that will
suffice? (answer to the nearest cent) ; Lil _.
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W‘f ) I 2_ Calculate the present value of an annuity which pays $100 at the beginning of each month for five months. Using simple discount with an annual effective rate of discount ofiB%.(answer to the nearest cent). Wé) 7" l [W't slim/Me dkacuﬂ‘l" t ﬁn (765mg.
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7/ 53%; W / 3. A continuously paying level annuity pays $200 each year for ten years. The force of interest is 2/(1+2t). Find the
present value of this annuity. (answers to the nearest cent) .fsxs §%sﬁ ameué %#ur Hﬁmzé : 6 :6 36
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savings? (answer to 5 significant digits) 7—Way :1 a We? a? as 13,23 1“ Chi":7 ‘ £7 133223 :2 C WM? 901? ‘\ @
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\Q 5. A perpetuity I has annual payments. The first payment is for $150 and then payments increase by $50
each year until they become level at $1000. Find the value of this perpetuity at the time of the first payment
using an annual effective interest of 4%. (answer to the nearest cent) La A Le me w, lé ‘3 .A 1 _ ’?‘ _ i j f} 2:. 157; Hawr may 1w: Wm” wwav’ railway new (a 1/ at?" ()3 “(1) =2. ’ (i Vin 2'; W0 MWWW l€W / :9 pm“:— M‘a Mace/n37 / t; 22/
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l [wile/I i‘ / ,/ /7 9 Name: “)2 (Surname) (First Name) 1. Stuart wishes to have $15,000 to buy a used car three years from now. He plans to accomplish this, through an
account with a nominal interest rate of 4% compounded monthly, by depositing $400 at the end of each month
during the first year, and Q at the end of each month during the next two years. What is the smallest Q that will
suffice? (answer to the nearest cent) . age \ ljlgrlx MI? W ’7‘298 623373 «f gm; (2 aging )ww—r g ,3“ i1 (>1 0cm = WW 0+» A a? €3,277 5 “a”? (Q; "a: Mary! l 2. Calculate the present value of an annuity which pays $100 at the beginning of each month for five months. Using E
JV» i simple discount with an annual effective rate ofdiscount of;€)%.(answer to the nearest cent). Vlt) “z”, “330%; {3%ng I") AA (7&5‘V‘a‘ M“ VH7) 7; /~.02Lf“.t/ wwe {3. F3 ﬂwg‘ﬁwyﬁﬁy {in ymwrﬁg‘ W0£WW t 1/0) t WE) .1; WM ,1, WM 7 1&0 X/ 7L /"‘3ﬂ2«€. 7“ /'°‘” $2613“) a... /v_p1.§*{%) 7L /M’ﬁ2[yép%}‘/ z $ I g ’ ’ r i / . .3.»
f t 3. A continuously paying level annuity pays $300 each year for ten years. The force of interest isB/(lﬁ‘t). Find the
present value ofthis annuity. (answers t the nearest cent) ‘6': at 'jmw; I ‘ i ;n‘?(€: S (gala 5a if“ at; “ ﬂyilH’Sla m ﬁr, m
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SW \ ‘ll 4. Shelly has a saving account that earns 25% interest payable continuously and has a current balance of $30,000. If Shelly withdraws funds continuously at a rate ofﬁfooo per year, at what time will she have exhausted her
savings? (answer to 5 significant digits) wﬂm:;%mw§%a‘ﬂi
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each year until they become level at $1000. Find the value of this perpetuity at the time of the first payment
using an annual effective interest of 4%. (answer to the nearest cent) L6} A $26: fhé (4
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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

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