Chapter 3, Section 2
1. (S13HW) Calculate the present value for an annuity that pays 500 at the end of each year for 20
years. You are given that the annual interest rate is 7%.
Solution:
1 1.07 20
1
Chapter 3 Homework
Spring 2014
Chapter 3, Section 3.2 and 3.3
1. An annuity immediate pays 100 each year for 15 years. Calculate the present value of this
annuity at an annual effective interest rate
Math 373
Fall 2013
Homework Chapter 3
Chapter 3, Section 2
1. (S13HW) Calculate the present value for an annuity that pays 500 at the end of each year for 20
years. You are given that the annual inter
MATH 373
Quiz 6
Spring 2013
April 11, 2013
1. Qistina buys the 100 shares of stock of Sims Corporation. Qistinas broker charges a
commission of 0.30 per share.
Jong sells 100 shares of Sims Corporatio
MATH 373
Quiz 6
Spring 2013
April 11, 2013
1. Qistina buys the 100 shares of stock of Sims Corporation. Qistinas broker charges a
commission of 0.30 per share.
Jong sells 100 shares of Sims Corporatio
There are 3 versions of the test. Find your version.
Math 373
Spring 2014
Quiz 2
February 11, 2014
1. Weili borrows 10,000 from Cameron. Weili will repay the loan with three payments of 4500
each. The
Math 373
Fall 2013
Homework Chapter 2
Chapter 2, Section 2
1. Brandon borrows 2000 at an interest rate of 7.2% compounded monthly. Brandon repays the
loan at the end of 6 years.
Determine the amount t
Math 373
Quiz 7
Spring 2013
April 18, 2013
1. You sell a one year European-style put option with a strike price of 48 on the stock of Yan
Company. The premium for the put is 4.70. The current spot pri
Math 373
Quiz 7
Spring 2013
April 18, 2013
1. You sell a one year European-style put option with a strike price of 48 on the stock of Yan
Company. The premium for the put is 4.70. The current spot pri
Math 373
Spring 2013
Quiz 2
January 31, 2013
1. Joe borrows 1000 from Yue. Joe repays the loan with a payment of P at the end of 2 years and
a payment of P 100 at the end of 4 years.
The annual effect
Math 373
Spring 2013
Quiz 2
January 31, 2013
1. Joe borrows 1000 from Yue. Joe repays the loan with a payment of P at the end of 2 years and
a payment of P 100 at the end of 4 years.
The annual effect
Math 373
Fall 2013
Quiz 1
January 22, 2013
1. AnnDrea invests 10,000 in an account for 10 years. During those 10 years, she earns the
following returns:
i. A monthly effective interest rate of 1% duri
Math 373
Quiz 5
Spring 2012
April 10, 2012
1. The bid price of JAB International Stock is 50.
Jacquelyn sells 1000 shares of JAB International. She pays a commission of 1%.
Brad buys 1000 shares of JA
There are three versions of this quiz. Find your version!
September 16, 2015
Copyright Jeffrey Beckley 2015
Math 373
Quiz 1
Fall 2015
September 9, 2015
1. You are given that:
a.
v(t )
b. 10
1
t2
9
Math 373
Fall 2015
Homework Chapter 2
Chapter 2, Section 2
1. Kanupriya deposits 1000 in a bank today. At the end of 4 years, she has 1250 in her account.
Determine the annual effective interest rate
Math 373
Fall 2015
Homework Chapter 2
Chapter 2, Section 2
1. Kanupriya deposits 1000 in a bank today. At the end of 4 years, she has 1250 in her account.
Determine the annual effective interest rate
Math 373
Spring 2013
Quiz 1
January 22, 2013
1. AnnDrea invests 10,000 in an account for 10 years. During those 10 years, she earns the
following returns:
i. A monthly effective interest rate of 1% du
Math 373
Quiz 5
Spring 2013
March 26, 2013
1. You are given the following yield curve for spot interest rates:
t
0.5
1.0
1.5
2.0
2.5
3.0
rt
1.25%
2.25%
3.00%
3.50%
3.75%
3.90%
Calculate the price of a
Math 373
Quiz 5
Spring 2013
March 26, 2013
1. You are given the following yield curve for spot interest rates:
t
0.5
1.0
1.5
2.0
2.5
3.0
rt
1.25%
2.25%
3.00%
3.50%
3.75%
3.90%
Calculate the price of a
MATH 373
Quiz 3
Spring 2013
February 26, 2013
1. Emma invests 10,000 into Fund A at the end of each year for 13 years. Fund A earns an
annual effective interest rate of 6%.
At the end of each year, th
MATH 373
Quiz 3
Spring 2013
February 26, 2013
1. Emma invests 10,000 into Fund A at the end of each year for 13 years. Fund A earns an
annual effective interest rate of 6%.
At the end of each year, th
Math 373
Spring 2012
Quiz 5
March 27, 2012
1. The common stock of Wang Corporation will pay a quarterly dividend of 8 in 3 months. The
corporate dividends are expected to increase by 1 each quarter. I
Math 373
Fall 2012
Quiz 4
October 30, 2012
1. Li purchased a 10 year callable bond with a par value of 10,000. The bond matures for par and
pays semi-annual coupons at a rate of 8% per year.
The bond
Math 373
Fall 2012
Quiz 3
October 10, 2012
1. Durban is receiving an annuity for 40 years. The annuity makes quarterly payments. The
payments during the first year are 25 paid at the end of each quart
Interest Theory Facts 1
Words
Accumulation Function
Amount Function
Symbols
Effective Interest Rate of period from t1 to t2
i[ t1 ,t2 ]
Effective Interest Rate for the nth Period
Annual Effective Inte