9
Compound Interest: Further
Topics and Applications
Concept Questions (Section 9.1)
1. If FV < PV, the quantity is decreasing in size as time passes. Therefore, the rate of growth
is negative. That is, the value for i is negative.
2. No. You will lose mo
11
Ordinary Annuities:
Periodic Payment, Number of
Payments, and Interest Rate
Point of Interest (Section 11.1)
Reality Check
1. The annual income at age 65 that will have the same purchasing power as
$50,000 at age 20 is
FV PV 1 i n = $50,000 1.03 45 = $
Chapter 6 Simple Interest
I=Prt
Sum = P + I
where I = Total interest
P = principal
r = rate of interest
t = term period (in years)
Calculate the Interest earned on $5000 invested at 4.5% for 37 days
I = $5000 * .045 * 37/365
I = $22.81
Sum = Total future
Chapter 10 Ordinary Annuities
This chapter will also use:
PV = FV(1 + i)-n
FV = PV(I + i)n
Future Value of an ordinary simple Annuity
[
]
n
(1+ i)
FV
= PMT
i 1
Cash Flow
Inflows are treated as positive (+) eg receipts
Outflows are treated as negative (-)
Lab 1
Question 1 [5 points]
The question was:
Evaluate the following expression:
(5 5 - 4)3 6 + 6
Note: Please make sure your final answer(s) are accurate to 2 decimal places.
Your solution was:
Marking:
The correct answer was: 1,549.50
Do not forget the
Lab 2
Question 1 [5 points]
The question was:
Simplify the following and collect the like terms:
3(4x - 8) + 7x - 7(x + 4)
Your solution was:
Marking:
The correct answer was: 12x - 52
TIP: Sometimes an algebraic expression may be simplified by adding or s
Ch 4 Merchandising Formulas
S=
C=
E=
P=
M=
N = L(1-d) - basic discount formula
N = L(1-d) (1-d) (1-d)
S=C+M
M=E+P
S=C+E+P
Rate of Markup on Cost = M/C * 100%
Rate of markup on Selling price = M/S * 100%
S=
C =M =
C = M(reduced) =
S(reduced) =
D = Amount o
Visual C# 2012 How to Program, Fifth Edition
CHAPTER 7Methods: A Deeper Look
Practice Questions:
7.1 Introduction
1. _ methods can be called without the need for an object of the class to exist.
a) special
b) independent
c) static
d) dependent
Answer: c
2
3. Interviews are conducted to find the right candidate for job with proper capabilities to handle the
work. One can ask different types of questions like: - open ended question, closed and range of response
questions. Followings are some questions:1. Is
IPv4AddressingSubnetMasksandSubnets
1. SupposeyouhaveaworkstationthatusestheIPaddress203.12.176.55onatraditional
IPv4network.Towhatnetworkclassdoestheworkstationbelong?
a. A
b. B
c. C
d. D
2. HowmanybytesareusedforanIPv4address?
a. 4
b. 16
c. 31
d. 64
3.
Visual C# 2012 How to Program, Fifth Edition
Chapter 10Classes and Objects: A Deeper Look
Practice Questions:
10.1 Introduction
1. Object orientation uses classes to:
a) develop algorithms
b) encapsulate data and methods
c) organize large amounts of data
Visual C# 2012 How to Program, Fifth Edition
CHAPTER 8Arrays
Practice Questions:
8.1 Introduction
1. Arrays may have
a) one
b) two
c) more than two
d) All of the above.
Answer: d
dimensions.
2. Arrays are
data structures.
a) constant
b) dynamic
c) static
January 2010
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February 2010
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Name:_
Marks:
/30
Midterm 1 Version 1
This exam has 10 questions and its worth a total of x marks. You have 1 hour and 50 minutes to complete this
test. Show your work on the exam. Be sure to read each question carefully and to write legibly. If I cant
un
Chapter 11 Formula Sheet
11.1
Use this formula to calculate PMT by entering in the known values for i, n and PV or FV.
1 1 i n
PV PMT
i
1 i n 1
FV PMT
i
For general annuities, the periodic interest rate must match the payment interval, substitute i wi
3
Ratios and Proportions
Exercise 3.1
1. 12:64 = 3:16
(each term divided by 4)
2. 56:21 = 8:3
(each term divided by 7)
3. 45:15:30 = 9:3:6
= 3:1:2
(each term divided by 5)
(each term divided by 3)
4. 26:130:65 = 2:10:5 (each term divided by 13)
5. 0.08 :
8
Compound Interest: Future
Value and Present Value
Concept Questions (Section 8.1)
1. We compound interest when we convert it to principal and calculate subsequent interest
on both the principal and the converted interest.
2. The compounding period is th
10
Ordinary Annuities:
Future Value and Present Value
Concept Questions (Section 10.1)
1. The two types of annuities are distinguished by comparing the payment interval to the
compounding interval. If the payment interval equals the compounding interval,
13
Annuities: Special Situations
Concept Questions (Section 13.1)
1. The perpetuity has the larger present value. The greater the number of payments in an
annuity, the larger the annuitys present value. Hence, PV(perpetuity) > PV(annuity).
Alternatively,
12
Annuities Due
Point of Interest (Section 12.1)
The Ten-Percent Solution (for Achieving Financial Security)
1. Answering this question requires a trial-and-error approach for various combinations of the
following alternatives:
PMT = $2400 and n = 30 or
15
Bonds and Sinking Funds
Concept Questions (Section 15.2)
1. Four variables affecting a bonds price are:
the face value of the bond
the bonds coupon rate
the prevailing market rate of return on bonds
the time remaining until maturity of the bond
Onl
14
Loan Amortization; Mortgages
Point of Interest (Section 14.1)
Just When You Thought You Had It All Figured Out
1. Jeff is missing the point that his average investment (including interest earned) in the GIC
will exceed $10,000, whereas the average pri
Ch 5 Applications of Linear equations - BrkEven
Cost-Volume-profit Analysis is a technique for estimating a firms operating profit at any sales volume,
given the firms fixed costs and unit variable costs.
Net income = Total Revenue Operating Expenses
AT B
Chapter 8 and 9 Compound Interest
Periodic Interest rate = Nominal Interest rate / Number of compounding per year
i = j/m
j = Nominal interest rate what the bank gives you 9.5% compounded semi-annually
m = Number of compounding per year .2 for semi-annual