MATH 30055
The Mathematical Theory of Interest
Dr. Kracht
Review for Final
Chapter 4: General annuities
Chapter 5: Amortization and Sinking Funds
1. Osborne received a ten-year annuity. It paid $500 at the end of each quarter for the rst four
years, and t
MATH 30055
MWF 1:10
The Mathematical Theory of Interest
Dr. Kracht
Spring 2016
Homework 1 Solution
1. Suppose a(t) = t2 + t + . If $100 invested at time 0 accumulates to $152 at time 4 and $200
invested at time 0 accumulates to $240 at time 2, find the ac
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. 1(7)
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1+1?
First, we can manipulate this equality by taking the nth powers
we know
and
Where i and d is the effective rates