quiz_5_soln - Name: ID: (Surname) (First Name) 1. Complete...

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Unformatted text preview: Name: ID: (Surname) (First Name) 1. Complete the following amortization schedule. Note that there is no payment at time 2 and that the interest at time 3, I3, represents the interest earned between time 1 and 3. Please show your work. (answer to the nearest cent) Time | Payment Interest Portion Principal Portion Outstanding Balance 0 / / 1 Q1 l l P1 3 Q3 ‘ I3 I 7745 ‘ OLB3 4 ‘ 8000 712.75 7287.25 ) OLB4 5 ) 05 . I5 ‘— 6967.75 I 0 OLBLP = P9 =2 6767.24: 02.13%: 492.8%”); f; :: wage + warms“ : 157525 \ a i “ ‘ W ,2" '5‘ —- J 2 2 L OLE W) L “w “‘” v ~ »«. I Lfi ? /4/~ W 0 3?: LaLB,: szcaaaa?5)£ %%€5#7 516. :95 +195. «2.: 35050 +« may}; Qg/wf. MB, :2: {2.43% +7; M%’S’l~‘%?¢€ 3 742,009 EKIUhf&wpfimfifiifiMfi{LQMOfi2255 Q7);’ia,'l‘l9) :: 11%” + “9139—? :— @4270 am an W 0 . mic-r 5”" w ‘0 “My 2. Ellen has a thirty-year mortgage with level monthly payments. The amount of principal in her 25th payment is $222.20 and the amount of principal in her 37th payment is $233.31. Find the amount of interest in her 49th payment. (the answer to the nearest cent). f): I’IX 30 '3 36 :3 awed? 03 ~ 7.2210 (-24,” "a Q \/ 3:}: C2 Vialyf ' 3!: '7 [03}; Ql/ I 3: Ql/ : 933,2! . 2. a (:13 .2: ((1')); 3 33:7. 1 I, 9“: (93.9” (l . 2.53 a 3% ’2—‘0 flea Qumba tm/fiJHw 5 flewaw gaafis .x‘ : (sweaty m (waflé) :: 5246.908 3. A $1000 7% ten-year bond has semiannual coupons. It is purchased new at $880 and is redeemable at $1020. Find the coupon amount and the annual yield rate compounding semiannually. (answers to 3 significant digits) Frail/0&7 '3; 796 “’32.. 1/1 p; P,» am twill/f nczfi/flm’lfi www FEW 4. A loan of $10,000 is being repaid by quarterly payments of $X at the end of each quarter at loan rate of 8% compounded quarterly. If the outstanding loan balance at the end of the first year is $7,192.43, find the quarterly payment SX. (answer to the nearest cent) 7}: €23 2”: 7/6”; [10% tr— (may: ?/‘72,43 fir— _ OLE? *2 xgiawgz/m) wchS—pfl, :: “92/C72l‘3 50)V€ fFW“ — y @1959 “” 5261127 1.27 m‘?‘-/c7”2,% 5m) « 0 5. A 15 year loan is amortized with monthly payments of $400 each, starting one month after the loan is made. If the interest paid in the 7th payment is $300, find the annual rate of interest compounded monthly on the loan. (answer to 3 significant digits) 2 Imxisalgv ‘T ~ 300 a) f; :: ital? militia? '2: i’W ava life Fax: (QV’ QV v?) 6. Terry borrows $10,000 at an annual effective rate of interest of8%. At the end of each year Terry pays the interest on the loan. He also sets up a sinking fund to repay the principal at the end of 6 years. Terry’s sinking fund earns 4% interest compounded monthly. At the end of the second year Terry has accumulated $2000. If he wishes to reach his goal of $10,000 by the end of 6 years, what level monthly deposit must he make at the end of each monthly for the remaining 4 years? (answer to the nearest cent) J: :1 (337% P2,:- moo/tit“. ail” wwwfifia+ DgWB :1 @5905? i7 f; 9,... ’ZOL’WiQ/“Hj I Name: ID: (Surname) (First Name) 1. Complete the following amortization schedule. Note that there is no payment at time 2 and that the interest at time 3, I3, represents the interest earned between time 1 and 3. Please show your work. (answer to the nearest cent) Time Payment Interest Portion F_ Principal Portion Outstanding Balance 0 / J / / —( OLBO l 7 01 1250 P1 ‘ 0le 3 03 I3 7 30000 OLB3 4 8000 250 7750 ( OLB4 5 Q5 l is "i 2250 l 0 0L3“; ff; 29,1550 ates 02.13% «i if; : 22053 + “29-527 =2: farm u a ’L .9 ‘ 4 2 2 630%? "7 .\ at“: 5 , ,‘w p ‘3 ’ I ‘. ,j‘ a‘ U *3 if: i»! Avg-r" E? -’ * é . 2 ,n .2: (NW) W {J‘émfii ‘ (9% 2; 134»??? mm «2» aafiffla arm/awe” :30 m. Wm. M C“ ‘5”,9 fit A “"2 f; i .3. g. m :2 »~ “I m, ff} 5 Fifi? H; w gyaw‘: if ,I (fly é: ,; gag)? :3: A! “f ( ; ~ I w a 5 r” 2. Ellen has a thirty-year mortgage with level monthly payments. The amount of principal in her 25th payment is $22250 and the amount of principal in her 37th payment is 523?.119 Find the amount of interest in her 49th payment. (answer to the nearest cent). fl“: rm “$0 3M? a ._.x%é’5“”’“§ «32.2,th 3. A $1000 9% ten-year bond has semiannual coupons. it is purchased new at $880 and is redeemable at $1020. 4. A loan of $10,000 is being repaid by quarterly payments of SX at the end of each quarter at loan rate of 4% compounded quarterly. If the outstanding loan balance at the end of the first year is $7,796.91, find the quarterly payment $X. (answer to the nearest cent) - 3 In?! h: (I: I I ,V’Kfl‘ J M21: M jsz ‘ ‘i‘ 22 r maqu /‘3’M@C/~0i) » at, ago/£3; ~ w fink/cf 55? V” 4» y, .i VVVVVVVVV fin» _ "' A we Iééwég «- r f! if; {e M) at“ 5? [I 4%» 1" ' «6'0 [U Q & 5. A 15 year loan is amortized with monthly payments of $400 each, starting one month after the loan is made. lf the interest paid in the 5th payment is $300, find the annual raterle interest compounded monthly on the loan. (answer to 3 significant digits) h > )1; left: fig}; 2 “a g m ,g P; ‘: lfflfl? a 36352 My? V a ##1le ‘45” , Mlle /9 v» {3a if i: 50/ , Jr” in thyfir f wriff, 6”” t m “l Mi? I t, A} ’ ta,aad???¥fl .. “2L” “x m C} W l if? ‘32 7w 6. Terry borrows $10,000 at an annual effective rate of interest of8%. At the end of each year Terry pays the interest on the loan. He also sets up a sinking fund to repay the principal at the end of 6 years. Terry’s sinking fund earns 4% interest compounded monthly. At the end of the second year Terry has accumulated $1000. If he wishes to reach his goal of $10,000 by the end of 6 years, what level monthly deposit must he make at the end of each monthly for the remaining 4 years? (answer to the nearest cent) ‘ 3 km 5’3 72]”) jaw? w‘hfiyfiéx , @210? 7’ an: a," SEW a. Viv-«E ’ '3’: hr gm}; k I! lmwcwfl *f}“%@hrwfw*" ~ \f’g {View «ll ...
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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.

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quiz_5_soln - Name: ID: (Surname) (First Name) 1. Complete...

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