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172A 2011 Exam1

# 172A 2011 Exam1 - Math lﬂA—Examl-lﬂfﬂﬂl Name...

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Unformatted text preview: Math lﬂA—Examl-lﬂfﬂﬂl Name: 1111M "LE ‘éDLUTIDTJ 1. - 1 Depusits t11 fund: \$2,0ﬂ'l] paid on 11112011; \$111111] en 1 1121117! Withdrawals frenl fund: Nun-2 Interest accumulates at the fulluwing rates for the var uus periuds speciﬁed: 5 111121111 thruugh 12121121115: 11”“ = 3% , 12 1111211111 thruugh 12131121121: i=1?" LI”.- — 1 = 1.11:: ea 1' - 11 111121122 thruugh 121311211211: 11141 =e'11. What is value of the fund as'uf 1213112ﬂ3l'l? D11 the pr hiem whichever 111a},r ynu want. If yuu use the W functions un your ealeulat , ﬁll in the buxes heluw. Bank I eredits interest at a enntinuuus rate that is a £11 etien of t: ﬁ[t}=.ﬂﬂf{1+.ﬂ3t} ggejLe 1:. Lﬂiegggge L a} \$5,090 is depesited at #3. ‘What is the aeeumulat .d value at 17:? ? sham v me» We. : Sm -I,+~o'i'>="l> i-t-aiixl 1:} Mat neminal rate (if interest, compounded qua erlgorr that is earned between t=3 and T DJ Alex herrews \$3,I]Illll from Bank F at a nominal rate of interest 01' 8% eempeunded quarterly. Twn years later, he pays F 96 ll. Three years after that, he burrow another 5X. Fenryenrs after that. he ays F \$4,0ﬂﬂ. After wltiell he still ewes the Bank \$2,3ﬂ8.33. e») X qe. + 45 (ememwﬁ) Caleulate X 35m 4: (m? rib q! Prejeet X requires an investment of \$1,900 at t=ll. Th investment pays seen at t=5 and \$91“! at 1:212. Prejeet Y requires investments of \$5M} at Fill and att 5. The investment pays \$1,100 at t=1 5. Prajeet X and Prejeet V has the same Net Present Val e [NPV], based an annual effective interest rate i. {mm} Qt“ c‘l‘m a} Calculate i. )4 OPE: CI‘J Ft}?- é: Cable’s 41ers Basel a qt 3“ 1 Cl“ 77"? 5‘ :2. cat: 6 :- <tTet> Feta L b} What is NPV}; — NPVY based on an annual effeetiv interest rate {If 6% IZCD‘A Elucf. g Wang and Huang eaeh burrowed an identical amnunt from Wang at a nominal rate of discount {If 5.4% convertible quarterly. Wang repays her Inan by making payments of 32,0011 at the end 0f each year fu l5 years. Huang makes payments of 54,5111} at times 1T; 3T and HT. Solve fnr T QM: ‘i‘ié’3~‘e& €451 2<Lhm> inlet My =- Cb HE'L Q¢4z<tgm>w¥ﬁ '1 IKK :- New?“ ﬂ. - ; Sports Manufacturing needs capital for expansion. It borrows ii? 1 £00,000 from Venture Bank for three years at 6% nominal interest‘fc'onvertihle quarterly, and \$500,090 for ﬁve years from a private investor at a 5 an effective discount rate. At the end of tvvo years, Sports Manufacturing ma s a \$200,000 three—year loan to its supplier of titanium {for baseball bats] at ‘33?) annual effective i nter— . est. What annual internal rate of return should Sports‘Manu Facturing report for _ th_e__con1bined cashﬁows over the ﬁve~year period? ___... _.. _ . —.—_._ —-— Values of Fund: Date 3mm ﬁﬂﬂﬂl W New 14.00“ Depesits: semen [mu 1}; sense (4”!!!) 15 um} Withdrawals \$1,5ﬂ'l] (1 Hill); SISIJ {#2311} The dollar-weighted rate ef return fer 2ﬂ11_ is 10%. What is the timenweighted rate of return for 21111? In year calculation, you can ignore the eﬂ’eet of one er days of timing differences. Also, fer duller-weighted ealeulatinn, you Jam use either simple er eempuund interest. ' £3-me (W _ {MELX ¢ [m ‘Ls-‘ﬁm CF15: (WW? em : {ﬁsh‘s Heel >4: l¥IOE-?"le<i*l a “HAS. Prefesser K has retirement savings of \$5ﬂ,ﬂﬂﬂ. He pla s to retire 2i] years frem new (when he will he 9“ . He would like to reeeire \$5, [Ilﬂ eaeh month far 15 years starting on his 90“ birthday. How much {lees h need to deposit inte a savings aeenunt at the end at each quarter for the next 2!] years, assuming that he can earn an effective interest rate [if 6% far the neat 35 years. Jeremy deposits \$250 intn an account at the end of cac 3-year pericd fer 3!} years. The account credits interest at an annual effecﬁ e interest rate of f. The accumulated amount in the account at the end at 5 years is X and the accumulated amuunt in the accuunt at the end uf 3!] ye rs is 4X. 3 Calculath M 11+ng1'1-3 it zwgﬁ ill]. At an annual effective interest rate of i, the PV today a a special Iii-payment annuity is Still] Payments are made every 2 years and he ﬁrst payment is at t=ti. The ﬁrst 5 payments are \$11} each and the last 5 payme ts are Eli} each. Using the same annual effective interest rate i, ealenlat the PV of a perpetuity that pays 35 every six Innaths1 1with the ﬁrst payment 2 years from ncvv. MIWM ._.,mn._'£aa --. ...
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172A 2011 Exam1 - Math lﬂA—Examl-lﬂfﬂﬂl Name...

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