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Unformatted text preview: ”' a“ Math DIAL—Exam 1—1omuo Name: 3mg L. '5 1.
Deposit to Pnutl: ELM!) paid on lflfllllﬂ Withdrnwnl from fund: Slﬁﬂﬂ on 1!] H015
Interest accumulates at the Following rates for the various periods speciﬁed: 53. law now through 21112: of” = 3%
2013 through lﬂlﬁ: E = 7% m
Ll ‘l‘e Iﬂl'Tthrongh eon: i“‘“=o% What is value of [he fund as of 1213111022? Do the problem whiehever way you want. If you use the TVM Functions on your calculator, ﬁll in the boxes below. LP}: é _ .%v§n3<a~mr5 _ xiiilcm‘lnzﬁ Clﬁ‘rﬁ) Bunk I eredits interest at a continuous rate that is a function 01' t:
s (1) = {sn+1e:+ui}neee a} SEMI[II is {lepnsited at t=2. 'tht is the accumulated value at t=ﬁ '? E.
g (SEW [Oi+1) m
—T—“*‘
.3. m 1 f;
' Sot+gt1+3
: EreN Q Lm * Yams squeal
:gme, : 769146
ﬂ h} 1What is the annual rate of simple interest earned during the investment
perind'l' r550 (weir) 2 7 came .. L : iAs—ﬁét ‘/
W i 3' Anthony opened a savings aeeouut at Bank 35 on Willﬂlﬂ. It eredits interest at
a nominal rate of 3% compounded quarterly.
He made the following deposits and withdrawals.
Deposits: Tflﬂﬂlll 55W, WIIIHH 52W
Withdrawals: Tflfll'tll smo, Tlllllllﬁ 3X, Tllllﬂlﬂ $3.55
The Tflfllllﬂ withdrawal emptied the account. 1} Draw a timeline of the eashﬂows in and out of the aeeount 1) Calculate I to 1 decimal places1 il' you use the calculator functions, he
sure to show all entries (53% 6201?; #1 Anne nnd Frank each burlaw $123111] from their father. Anne repays her lean with two payments: semen in 2 years and 53,000 in 4
years Frank prefers to make a single payment of $15Jlllll]. When ahnulel Frank make the payment an thnt he and Anne lwill each have the
same effective interest rate? C/exl~% # 6 T: ‘tSmg 5» An investnr [Jaye $llll'lJll'll'l tndajv fer a inveainlenl that returns cash ﬂows 0f
$Tl},ﬂﬂl} at end elvear 3 and Sﬁl'lJlill'l at end 111' year 4., hall' of _ve:lr 3’5 cash ﬂaw
is invested in n lTWDfﬂal' Certificate of Deposit (CD) to earn 3% per animal
effective and all at year 4’s eaeh ﬂew is invested in a nee—veer CD to earn T%
per annum effective. All nlnniea are withdrawn Irv t=5 if i = 5%, what is the Net Presenl Value [NPV] ei' this investment tedav? $1m_m 6. Daniel upens an account at Bank B that crﬁdihs intercst at im=ﬁnfu and depnsita
Slﬂﬁﬂﬂ ' He makes the I'nllnwing annual withdrawals starting at t=1: SK for 1 year
52X far 2 years .541 far 4 years At t=8, he still hns $2,501] left in his account. Chlunlntc X 1'.
Values of Fund: In mama M31310 warm 933mm name
New 12.0w 14.1mm 15.11410 E Deposits: 54,000 (mun); $2,000 (4mm) Withdrawals $1,590 (lflflﬂﬁ $25!] {4!}!19} Tlle duller—weighted rate of return for 2010 is 10%. What is the timeweighted rate of return for 11111}? Iu your calculi: timl, you can ig‘uure Ihe effeel ef une nr 2 days 01' timing differences. Alan, for dullerweighted calculation, ynu can use eilher simple or
mmpnund interest. ﬁled (,3,ch {ermm @6513 X _— iamﬁﬁ'
LawWa ND 2mm
M Lug—SM
5‘ “*3
LIED lidD ' Given:
Siﬁ= 42.13119
v“ = .4966: __ L)“
[+ i.
Salve [urn gm 1 Cu 1‘?“ — I A At an annual efl'eeliye interest rate at" i, the PV of :1 perpetuity paying 515 every
2 years equals SIM, with the ﬁrst payment at the end at' year ﬁ. Using the same interest rate i, calculate the P? 01' a perpetuity that pays 51
every quarter, with the ﬁrst payment 1 year l'rnnl new. 69 than M=l§féw
3‘? = (int) obi— ct eel— “L
(:qu 1L2: em: Mama 1m: [07. ——_ WMZWM
5.: a: PM 1:: M iii“
H: I, 65 3”“ 10. Interest is credited under the investment year Method neeording to the [allowing tohle: Year of ' Yes: of
Original if i; i; .3” Portfolio
InvesLmenl. Rate
1905 .05 .045 .04 .00 1091 19.59 @ ® (£53 1992 ' 199.0 .055 .00
1991 1993 .00 .00 .015 .05 199E Marcella made the following deposits: 11111939 51,000
11111991 $1,500
1”.“ [993 5500 a) ‘What is the value of her account on 1213111994 LEE: .3: Logor1435 anti05.1 [awrxl JEEN: 1.03 ‘1" [We Loofvpuir sot53$."
+ {50 )(lﬁB‘Jrll.ﬂb = Row.16 [I] What is level annual effective rate of interest she earned from 1.11109 to 1281.94? C114>=<tcmb>
C41 : = 4‘) PM: '1
C‘iJl'; (ls—ran.) Fol:1: C6133“: (3:613) T615391
1=¢qr£¢ (3.45% : 6.9
Cat): : loﬂ‘flg 111K: S~“+D§ _______———— ...
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 Fall '08
 Kong,L
 Math

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