7 , , e Show a_ll work, clearly and in ora'r If y , ,1
tail? earn-ed partial credit. Dr. Mann owns the Stile Vt)?E
, x 5 '~. ,
, '(8 points) Suppose that
(2) .(12) ' i ' '2
~ 5%,:- 5%, a = 5%, d = 5%,
9.4 Immunization
Risk is a factor for all investors, mainly due to the
uncertainty of future interest rates. Investments are
subject to changes in interest rates. An investor aims to
have a strategy t
3. (8 points) Frank invests $10,000 at time t = O. In return he receives $:5
t = 1 and $10, 000 at time t = 3. Half of the timel payment, he rein"
annual effective interest rate of 5.5%.
year period
7.1 Common and Preferred Stock
Characteristics of Common Stock
Major financing vehicle for corporations
Holders have ownership in the company in that they
receive part of the profits (dividends) &
force of interest IS 6t = (1 + t)_1.Find the present value of this annufg .
Ram g Pay mm: '
4G): Izgzjs). 60 Z 320
DISwIer nconidf
~|n (WM, '5 magma: :
6 4. ( paintleou borrow $22, 000 at an annual ef
5.2 Amortized Loans and Amortization Schedules
An amortized loan is one in which each payment consists of
interest due on the outstanding loan balance and the
principal payment.
The chart showing the
9.3 Convexity
We still consider the price as a function P (i ) of the annual
effective interest rate i .
Recall that in Section 9.2 we first approximated the price
function P (i ) with the tangent lin
[ ll -. I3 163
Dr. Manns ACF 329 Exam 3 Review
3.8 8|. 3. 9 C8 Sge Z?)
Your goal' IS to retire with an accumulated value of
$2,000,000 m twenty years. You are able to earn a nominal
interest rate of 7
' [ aqtB-Is]
Dr. Mann's ACF 329 mey Exam 1 Review
1.3 81 1.4 '
Suppose an initial investment of $1,400 grows according to
the accumulation function a(t) = 1+ 0.04t.
(a) How much interest is earned dur
Dr. Manns ACF 329
Exam 3 Review
3.8 & 3.9
Your goal is to retire with an accumulated value of
$2,000,000 in twenty years. You are able to earn a nominal
interest rate of 7.2% convertible monthly.
(a)
' [lento'15]
Dr. Manns ACF 329 Exam 2 Review
&
Stephen deposits $X in an account for three years. The
ending balance is $825.71. Find $X if interest is credited at
102) = 6%. 5590 (age, UPLOAOED F149,
Dr. Manns ACF 329
Final Exam Review
All Chapters
Briefly state and/or describe four things you know about
interest.
Give 5 examples of real life annuities. Describe them using
vocabulary from the theo
Dr. Manns ACF 329
Exam 1 Review
1.3 & 1.4
Suppose an initial investment of $1,400 grows according to
the accumulation function a (t ) = 1 + 0.04t .
(a) How much interest is earned during the second ye
Dr. Manns ACF 329
Exam 2 Review
2.2
Stephen deposits $X in an account for three years. The
ending balance is $825.71. Find $X if interest is credited at
$690
i (12) = 6% .
2.3
Suppose Rebecca opens a
Textbook HW 1
Jessica T Chandra
12 September 2017
Section 1.5 #8
Suppose you invest $2,500 in a fund earning 10% simple interest annually. After
two years, you have the option of moving your money to
M329F / M389F
About Homework
8/26/17 7:51 PM
For all homework:
You are strongly encouraged to work with your classmates! (Remember, you can
communicate with your classmates through Canvas.) However wh
chandra (jtc3288) Intro to Quest harper (54220)
This print-out should have 5 questions.
Multiple-choice questions may continue on
the next column or page find all choices
before answering.
Most questi
M329F/M389F Theory of Interest, Fall 2017
Unique number 54220/54595
TTh 2:00-3:15, CPE 2.212
Textbook:
Mathematical Interest Theory, Second Edition, Vaaler & Daniel,
Mathematical Association of Americ
1
PB Elective Subjects Period:
SDU Entry Requirement Course
Course Element 3:
BUSINESS ECONOMIC PLANNING MODELS
STUDENT SELF-PACED WORKBOOK
APRIL 2017
ALBERT G. ELAM, [email protected]
PROFESSOR
2
TABLE OF C
Logan Vinklarek
Dr. Mann
ACF 329 10AM
10/2/2015
Chapter 2 Review
Problem 5a
itw = (1+jtw)1/3 1. The growth looks like
$24,500
$28,212
$15,892
$18,212
$30,309
$23,892
The vertical arrows are a $10,0
Logan Vinklarek
Dr. Mann
ACF 329 10AM
10/16/2015
Section 3.6
Problem 1
a) Jemeels loan balance immediately after the 6th payment is $1516 a4 6% $5,253.10
b) From Jemeels perspective seven annual $1516
Logan Vinklarek
Dr. Mann
ACF 329 10AM
10/2/2015
Section 2.0
Problem 1
I initially deposit $2,000 at time 0 and $600at time 3. I withdraw $300 at time 2 and $2,925 at
time 4. All at an interest rate i.
Logan Vinklarek
Dr. Mann
ACF 329 10AM
10/30/2015
Section 3.9
Problem 1
a) (Ds) 28 gives the value at the time of the last payment of an annuity w/ payments at the
end of 28 interest periods, the kth o
Logan Vinklarek
Dr. Mann
ACF 329 10AM
9/4/2015
Section 1.3
Problem 2
AK(t)=Ka(t), where a(t)=1+.04t
A$2000(5)=$2000(1.2)=$2400
The accumulated value at t=5 of $2000 invested at t=0 is $2400.
Problem 4
Logan Vinklarek
Dr. Mann
ACF 329 10AM
9/11/2015
Section 1.7
Problem 1
First find how much was invested at t=0 in order to have $3200 at t=8.
$3200/a(8) = $3200/1.4 deposited at t=0
That grows to ($320
Logan Vinklarek
Dr. Mann
ACF 329 10AM
11/6/2015
Section 5.3
Problem 1
Time
0
1
2
4
Loan Int
0
889
889
1834.45
SF Deposit
0
5200
3000
4859.60
SF Int
0
0
218.40
722
SF Bal
0
5200
8418.40
14000
Net Bal
1