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Unformatted text preview: ENG 106 Homework #3 Winter 2012 Due: Wed, Feb 1, 3 pm, homework box 3.3 A California bank, Berkeley Savings and Loan, advertised the following information: interest 7.55% and effective annual yield 7.842%. No mention is made of the interest period in the advertisement. Can you figure out the compounding scheme used by the bank? (hint:you are given r and i a .) 3.10 Find the effective interest rate per payment period for an annual interest rate of 9%, compounded monthly, for each of the given payment schedules: a) monthly b) quarterly c) semiannually d) annually 3.18 A series of equal quarterly payments of $1,000 extends over a period of three years. It is desired to compute the future worth of this quarterly deposit series at 12% compounded monthly. Which of the equations shown is correct for this operation? a) F = 4($1000) (F/A, 12% , 3) b) F = $1000 (F/A, 3% , 12) c) F = $1000 (F/A, 1% , 12) d) F = $1000)(F/A, 3.03% , 12) 3.33 Suppose that $1,500 is placed in a bank account at the end of each quarter over the next 20 years. What is the 3....
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- Spring '12