A
NAME: _
STUDENT NO: _
_
_ _
PART A. Multiple Choice
l. (4 marks
An account with a 4% nominal interest rate compounded monthly earns the same effec
tive interest as an account with a continuously compounded interest rate of:
A. 0.33%
B. 3.92%
C. 3.96%
D.
NAME:_
PART A.
STUDENT NO: _
Multiple Choice
1. [4 marks
If interest is 8% compounded daily, how many days are required for a given principal to earn
4% in interest?
A. 175
B.
179
C.
183
D. 177
E. 181
2. [4 marks]
If interest is 10% compounded continuousl
NAME: _
PART A.
STUDENT NO:
Multiple Choice
l. [4 marks
What nominal annual rate compounded weekly is most nearly equivalent to 5% per year
compounded quarterly? [For this question, 1 year=52 weeks.]
A. 4.89%
B. 4.97%
C. 5.09%
D. 5.00%
E. 4.93%
2. /,i mar
A
NAME: _
STUDENT NO: _
PART A. Multiple Choice
1. [4 marks
A professor gives $100,000 to a university to provide for a yearly scholarship forever. If the
money can be invested at 5% interest indefinitely, then the scholarship will be:
A. $2,000,000/year
.1-
S/0
A
Department of Mathematics
University of Toronto
Tuesday, October 30, 2012, 6:10 - 8:00 PM
MAT 133Y TERM TES T #1
Calculus and Linear Algebra for Commerce
Duration: 1 hour 50 minutes
Aids Allowed: A non-graphing calculator, with empty memory, to
A
NAME: -
STUDENT NO: _
PART A. Multiple Choice
1. [4 marks
If money is invested at a nominal rate of 6% compounded continuously, then after 6
months it will have increased by:
A. 3%
B. 3.045%
C. 3.053%
D. 3.074%
E. 3.092%
2. [4 marks
How much money is ne
A
Department of Mathematics
University of Toronto
Tuesday, October 28, 2014, 6:10-8:00 PM
MAT 133Y TERM TEST #1
Calculus and Linear Algebra for Commerce
Duration: 1 hour 50 minutes
Aids Allowed: A non-graphing calculator, with empty memory, to be supplied
NAME:_
PART A.
STUDENT NO: _
Multiple Choice
1. [4 marks
If the rate of interest is 5% compounded continuously, then, in 10 years, $100,000 will accumulate to
A.$164,872
B. $162,889
C. $150,000
D. $137,111
E. $105,127
2. [4 marks
Hint: Note that 52 weeks