2010 Exam 1

2010 Exam 1 - ”' a“ Math DIAL—Exam 1—1omuo Name:...

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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- : Ere-N 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 : iA-s—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 burl-aw $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: ‘t-Smg 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 lTWD-fflal' 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 All nlnniea are withdrawn Irv t=5 if i = 5%, what is the Net Presenl Value [NPV] ei' this investment tedav?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 time-weighted 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 duller-weighted calculation, ynu can use eilher simple or mmpnund interest. filed (,3,ch {er-mm @6513 X -_— iamfifi' Law-Wa ND 2mm M Lug—SM 5‘ “*3 LIED lid-D ' 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 $1,500 1”.“ [993 5500 a) ‘What is the value of her account on 1213111994 LEE:- .3: Logo-r1435 anti-05.1 [awrxl JEEN: 1.03 ‘1" [We Loofvpuir sot-53$." + {5-0 )(l-fiB‘J-rll.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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2010 Exam 1 - ”' a“ Math DIAL—Exam 1—1omuo Name:...

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