MA170 Week 3 Report - Partial Payments; Simple Discount Rate
Name:
Student Number:
Lab
Spring 2013
1. [7 marks] A loan of $1200 with a simple interest rate of 8% is due in 11 months. The borrower makes partial
payments of $80 in 3 months, $35 in 8 months
Lecture 20: Introduction to Bonds
MA170: Introduction to Mathematics of Finance
March 20, 2014
Mathematics of Finance (MA170)
Lecture 20: Introduction to Bonds
March 20, 2014
1 / 11
Outline
1 Securities (Optional)
2 Bonds
3 Purchase Price of Bonds
Text: C
MA170 Week 10 Lab Notes
Text References: 4.1 - 4.3
General Annuities (4.1):
An annuity where payments are made more or less frequently than interest is compounded. There are two methods
used to deal with such annuities:
1. Change of Rate
Replace the given
MA170 Week 10 Report - General Annuities; Perpetuities
Name:
Student Number:
Lab
Spring 2013
1. [4 marks] Recall Question #2, Week 9, where a couple planned to invest in an RESP (Registered Education
Savings Plan) that earned interest at 3% compounded qua
MA170 Week 11 Report - Amortization
Name:
Student Number:
Lab
Spring 2013
1. [7 marks] A car worth $25 000 is purchased on July 1st, 2013 with a down payment of 12% of the purchase
price. The remaining cost is covered by a loan with an interest rate of j5
MA170 Week 13 Report - Bonds
Student Number:
Name:
Lab
Spring 2013
1. [5 marks] James and Alec each own a $1000 bond redeemable at par at the end of n years, and both of their
bonds are bought to yield j2 = 8%. James bond costs $918.35, and has semi annua
MA170 Week 12 Report - Sinking Funds
Name:
Student Number:
Lab
Spring 2013
1. [4 marks] A sinking fund earning interest at a rate of j2 = 6% is set up to accumulate $70,000 over a period
of 15 years. Open the Excel le named SinkingFund.xls found on MyLear
MA170 Week 2 Lab Notes
Text References: 1.1-1.3
Simple Interest (1.1)
1. Principal P - Initial amount of money (capital) invested or borrowed.
2. Rate of interest r - annual percentage earned on the original investment of P .
3. Amount of simple interest
MA170 Information Pertaining to Labs (Spring 2013)
Lab Coordinator:
Andrew Kabbes
Oce:
Phone:
E-mail:
BA426
884-0710 Ext. 4519
akabbes@wlu.ca
Lab Format
The lab itself will consist of a number of activities. While the actual composition will vary from wee
MA170 Lab 1 - Simple Interest
Name:
Student Number:
Lab
Fall 2014
1. [6 marks] Andrew takes a demand loan of $5,000 on September 17th. Interest is charged to his account on
the rst of each month, starting October 1st. Jacob pays $1,500 towards the loan on
MA170 Lab 2 - Simple Interest; Simple Discount
Name:
Student Number:
Lab
Fall 2014
1. [6 marks] A loan of $1500 with a simple interest rate of 9% is due in 11 months. The borrower makes partial
payments of $180 in 3 months, $45 in 8 months and $350 in 9 m
MA170 Lab 3 - Compound Interest Part 1
Name:
Student Number:
Lab
Fall 2014
1. [8 marks] A $150 000 long term promissory note with a due date occuring in 2 years and 10 months bears an
interest rate of 6% compounded semi-annually. The note is sold 2 months
MA170 Lab 4 - Compound Interest Part 2; Annuities
Name:
Student Number:
Lab
Fall 2014
1. [4 marks] Amanda invested $1500 for one year at 7% interest. The annual ination rate for that year was
1.8%.
(a) What was the real annual rate of return on Amandas in
MA170 Lab 5 - Annuities
Name:
Student Number:
Lab
Fall 2014
1. [5 marks] The Smiths deposit $600 at the end of each month for 30 years to fund a 25-year retirement annuity,
with the rst withdrawal made exactly 5 years after the last deposit of $600. Calcu
MA170 Lab 6 - Determining the Rate of an Annuity; General Annuities; Perpetuities
Name:
Student Number:
Lab
Fall 2014
1. [6 marks] The Lemon Lot car dealership is oering customers one of two options when purchasing a DeLorean
(a certain model of car) whic
MA170 Lab 8 - Amortization & Sinking Funds
Name:
Student Number:
Lab
Fall 2014
1. [7 marks] A couple buys a home and signs a mortgage contract for $250,000 to be amortized over 15 years.
The contract species a xed rate of j1 = 3% for 10 years. One year in
MA170 Lab 7 - Annuities Where Payments Vary; Amortization
Name:
Student Number:
Lab
Fall 2014
1. [10 marks] Recall Example 1 from Lecture 18 - Oct. 29.
Suppose you graduate today (at age 25) and start a job that pays $60000 per year, with annual raises ti
MA170 Lab 10 - Bonds Part II
Name:
Student Number:
Lab
Fall 2014
1. [12 marks] A $15000 callable bond with coupons at j2 = 8% matures on March 28, 2023 at par. The bond
is callable on March 28, 2018 at a 10% premium (i.e. reedemable at 110) or on Septembe
MA170 Week 9 Report - Simple Annuities Continued
Name:
Student Number:
Lab
Spring 2013
1. [7 marks] Dwight Schrute sets up a fund to payout $2000 at the beginning of each quarter. The interest rate
is 8% compounded quarterly. Show your steps when answerin
MA170 Week 7 Report - Continuous Compounding; Simple Annuities
Name:
Student Number:
Lab
Spring 2013
1. [5 marks] Hugo is considering an investment opportunity oering an interest rate of j = 5%.
(a) How much must he invest on November 1, 2012 to accumulat
MA170 Week 6 Report - Compound Interest Part II
Name:
Student Number:
Lab
Spring 2013
1. [10 marks] Suppose that $500 is invested into a savings account where interest is compounded monthly.
(a) Assuming the exact method for accumulation is in eect, deter
Lecture 18: Sinking Funds; The Sinking Fund Method
of Retiring a Debt
MA170: Introduction to Mathematics of Finance
March 13, 2014
Mathematics of Finance (MA170)
Lecture 18: Sinking Funds; The Sinking Fund Method of Retiring a Debt
March 13, 2014
1 / 14
O
Lecture 21: Bond Premium and Discount
MA170: Introduction to Mathematics of Finance
March 25, 2014
Mathematics of Finance (MA170)
Lecture 21: Bond Premium and Discount
March 25, 2014
1 / 12
Outline
1 Premium and Discount
Text: Chapter 6, Section 6.3
Mathe
McGraw-Hill Create Review Copy for Instructor Wolff. Not for distribution.
Mathematics of Finance, Seventh Edition
Preface
It is more than 25 years now since the publication of the first edition of Mathematics
of Finance, and over 30 years since we starte
COURSE INFORMATION
MA170C Introduction to Mathematics for Finance
Winter Term, 2015
Instructor:
Mr. Andrew Kabbes,
E-Mail: akabbes@wlu.ca, Office: BA426, Telephone: ext. 4519
Office Hours: Tuesdays and Thursdays from 10:00 11:00am, or by appointment.
Cale
MA104 Midterm, Winter Term 2009
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Disclaimer: Tests and exams from previous o erings of mathematics courses are posted to the on-line Exam
Bank, administered by the Mathematics Assistance Centre, as a courtesy to WLU students. Past exams
should be us
MA110 Final Exam, 2008-9
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Disclaimer: Tests and exams from previous o erings of mathematics courses are posted to the on-line Exam
Bank, administered by the Mathematics Assistance Centre, as a courtesy to WLU students. Past exams
should be used for
MA110 Final Exam, 2007-8
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Disclaimer: Tests and exams from previous o erings of mathematics courses are posted to the on-line Exam
Bank, administered by the Mathematics Assistance Centre, as a courtesy to WLU students. Past exams
should be used for
MA110 Midterm, 2008-9
Page 1
Disclaimer: Tests and exams from previous o erings of mathematics courses are posted to the on-line Exam
Bank, administered by the Mathematics Assistance Centre, as a courtesy to WLU students. Past exams
should be used for stu
MA110 Midterm, 2007-8
Page 1
Disclaimer: Tests and exams from previous o erings of mathematics courses are posted to the on-line Exam
Bank, administered by the Mathematics Assistance Centre, as a courtesy to WLU students. Past exams
should be used for stu