Jana Yu
Jy8539
Jana Yu - jy8539
Homework 1
1.3 #2
a(t ) = 1 + 0.4t
a(5) = 1 + .04(5)
a(5) = 1.20
AK (t ) = KA(t )
A 2000(5) = 2000A(5)
A 2000(5) = 2000(1.20)
A 2000(5) = 2400
At time 5 (t=5), you would have $2,400.
1.3 #4
2
a(t)= t + t +
2
a(4)=1.52= 4

ACF329 Homework 2
Jana Yu
Jy8539
1.7 #1
a(t )=1+0.05t
In order to have $S t 2 years from now, you should invest (at time t 1 ):
$Sv(t 2 )a(t1 )= $S
a(t1 )
a(t 2 )
1+0.05(3)
$Sv(t 2 )a(t1 )= $3,200
$2,628.57
1+0.05(8)
You must invest $2,628.57 at

ACF Homework 4
Jana Yu
Jy8539
2.0 #1
Nancy borrows $2,000 to open up her own ice cream shop, then 4 years later she
borrows another $600. The loan is governed by compound interest at an
annual effective interest rate of i. At the end of the second yea

ACF Homework 4
2.0 #1
Jana Yu
Jy8539
Nancy borrows $2,000 to open up her own ice cream shop, then 4 years later she
borrows another $600. The loan is governed by compound interest at an
annual effective interest rate of i. At the end of the second year, N