MATH 1175 Unit 4 Review Solutions
The test covers all concepts from the in-class lectures, practice
Lesson questions, homework, online lessons, and online labs.
For extra practice, try the odd numbered problems in the Chapter 13
Review (#1 to 19) on pages
Unit 3 L3 Lesson Practice Solutions
12.1 Amortization Part 1
1.
Carls Carpet Cleaning borrowed $7600 from Halton Credit Union at 8%
compounded quarterly. The loan is to be repaid by equal quarterly
payments over a two-year term.
a) Calculate the size of h
Questions for You to Try Now:
1. Debt payments of $400 due five months ago, $600 due
today, and $800 due in nine months are to be
combined into one payment due three months from
today at 12% p.a. compounded monthly. Determine
the equivalent single payment
Unit 1 L6 Lesson Practice Solutions
9.7 & 9.8 Effective and Equivalent Rates
1. Amanda's utility bill stated that interest would be charged at a rate of 2.5% per month on
any outstanding payments on the invoice. What effective interest rate would be charg
Unit 1 L5 Lesson Practice Solutions
9.6 Calculating n and t
1. How long would it take a loan of $15,625 to accumulate to $18,500 at the rate of 8%
compounded quarterly?
N
8.5290
I/Y
8
P/Y
4
C/Y
4
PV
15 625
PMT
0
FV
8.5290.
4
2.1322.
2 yr and 0.1322. 12
L4 Lesson Practice Solutions
9.5 Calculating i and j
1. Canary Calendars Inc. invested this year's profits of $64,000 in a bond that matured to
$84,500 in 2 years. Calculate the fund's quarterly compounding nominal interest rate and
periodic interest rate
Unit 1 L1 & L2 Lesson Practice
9.1, 9.2 & 9.3 Compound Interest: Future Value and Present Value
1.
What is the maturity value of $5000 invested at 6% compounded semiannually for seven years.
N
I/Y
6
P/Y
2
C/Y
2
PV
5000
PMT
0
FV
2.
2 7 = 14
7562.9486
If an
Section 4.1
Analyzing Linear
Relationships
ANALYZING RELATIONSHIPS
SCATTER DIAGRAM: A chart that portrays the
relationship between two
variables.
EXPLANATORY VARIABLE: The apparent cause of change in
the response variable.
INDEPENDENT variable
The X-AXIS
Section 4.2
Hypothesis Testing
(Matched Pairs)
MATCHED PAIRS
PREVIOUSLY: When we visited correlation, it was not
possible to claim that one variable was
the direct cause of a change in another
(there were too many other factors which
might have also contr
Section 4.3
Hypothesis Testing
(Independent Samples)
INDEPENDENT SAMPLES
INDEPENDENT SAMPLES:
There is no relationship between samples.
t
(x1 x2 ) ( 1 2 )
2
2
s1 s 2
n1 n2
Estimate df by the minimum of (n1 1) and (n2 1)
CONCLUSIONS: Will NOT be a strong a
MATH 1045 — UNIT 4 —— REVIEW
1. A group of college students randomly selected 217 student cars
and found that they had ages with a mean of 7.89 years and a
standard deviation of 3.67 years. They also randomly selected 152
faculty cars and found that the
15.5
Sinking Funds
Sinking Fund Method of Debt Extinction
used when interest only is to be paid periodically and the principal is returned in 1 lump sum at the end of the term of the loan periodic interest = principal periodic loan rate SINKING FUND is us
0011 0010 1010 1101 0001 0100 1011
15.5 Sinking Funds
45 45
1
1
23 23
1
Amortization Review
1 blended 0001 0100 1011 0011 0010 1010 1101 periodic payment covers all of the interest due and a portion of the principal with each payment: Outstanding Principa
Unit 3 L2 Lesson Practice Solutions
11.2 Perpetuity
1.
Lucy started a fund that would pay out $1,100.00 every month in
perpetuity.The fund earns 5.97% compounded monthly. Answer the
following questions.
a) How much money would be required to set up this f
Unit 3 L4 Lesson Practice Solutions
12.1 Amortization Part 2
1.
Dennis, a successful technology entrepreneur, purchased a private yacht
for $860,000. He paid 25% of the cost of the yacht as a down payment, and
financed the rest at 9.5% compounded monthly.
Unit 4 L1 Lesson Practice Solutions
13.1 Bonds Purchase Price on Interest Date
1.
A $1000, 6% bond redeemable at par matures in three years. The coupons
are payable semi-annually and the bond is bought to yield 5% compounded
semi-annually.
a) Compute the
MATH 1175 Unit 3 Review Solutions
The test covers all concepts from the in-class lectures, lesson
practice questions, homework, online lessons, and online labs.
For extra practice, try the odd numbered problems in the Chapter 11
Review (#1 to 13) on pages
MATH 1175 Unit 2 Review Solutions
The test covers all concepts from the in-class lectures,
homework, online lessons, and online labs.
For extra practice, try the odd numbered problems in the Chapter 10
Review on pages 396 to 397 of the textbook.
Round FIN
MATH 1175 UNIT 1 REVIEW SOLUTIONS
The test covers all concepts from the in-class lectures,
online lessons, and online labs.
For extra practice, try the odd numbered problems in the Chapter 9
Review on pages 306 to 307 of the textbook.
Round FINAL answers
Unit 4 L7 Lesson Practice Solutions
14.3 Net Present Value (NPV)
14.4 Internal Rate of Return (IRR)
1.
A firm is contemplating the purchase of a $10,000 machine that would
reduce labour costs by $4000 in each of Years 1 and 2, and by $3000 in
each of year
Unit 4 L6 Lesson Practice Solutions
14.2 Discounted Cash Flow (DCF)
1.
John is assessing an investment in which he would have to spend $50,000
today in order to receive future cash flows of $30,000 in the 1 st year,
$20,000 in the 2nd year, and $10,000 in
Unit 4 L5 Lesson Practice Solutions
13.5 Sinking Funds
1.
The City of Education borrowed $750,000 for twenty years at 13%
compounded annually to finance construction of Hillview Elementary
School. The payments are made into a sinking fund to repay the deb
Unit 4 L4 Lesson Practice Solutions
13.2 Bonds Yield Rates
1.
A $1000 Province of Manitoba bond, bearing interest at 5.8%, payable
semi-annually, has 11 years remaining until maturity. Calculate the yield
rate if the bond was purchased at 97.2.
BGN/END
2.
Unit 4 L3 Lesson Practice Solutions
13.4 Bonds Bond Schedules
1.
Rachel purchased a $5000 bond at a coupon rate of 7.5% payable semiannually and redeemable in 4 years. If the yield at the time of purchase
was 7% compounded semi-annually, construct the pre
Unit 4 L2 Lesson Practice Solutions
13.1 Bonds Purchase Price Between Interest Dates
1.
A $5000 bond with a coupon rate of 8% compounded semi-annually,
was redeemable on June 1, 2027. Calculate the purchase price of the bond
on September 22, 2017 when the
Unit 4 L1 Lesson Practice Solutions
13.1 Bonds Purchase Price on Interest Date
1.
A $1000, 6% bond redeemable at par matures in three years. The coupons
are payable semi-annually and the bond is bought to yield 5% compounded
semi-annually.
a) Compute the
12.2
Mortgages
Part 2
Slide:1
Prepayments
Extra Payment Options
Annual lump sum payment
once a year
10 to 20% of the original mortgage principal
Annual increase in the regular payment
once a year
10 to 25% of the regular payment
Double-up
any payment
12.2
Mortgages
Part 1
Slide:1
A mortgage is a loan that is issued by a financial lending institution to a
borrower, to purchase real estate (business or residential property).
TYPES OF MORTGAGES
FIXED-RATE
The interest rate is fixed for a specific period
Unit 3 L6 Lesson Practice Solutions
12.2 Mortgages Part 2
1.
The interest rate for the first five-year term of a $100,000 mortgage loan is
7.5% compounded semi-annually. The mortgage requires monthly
payments over a 25-year amortization period. The mortga