IEMS 326
Northwestern University
Spring 2012
Steven Golbeck
Homework #1
(4 questions, 100 points total)
Due Wednesday, April 4
Please put your name at the top of each page of your work. Show all work; no credit will
be given for answers without explanatio

IEMS 326, Spring 2012
Homework #3
(6 questions, 150 points total)
Due Friday, April 27
Please put your name at the top of each page of your work. Show all work; no credit will
be given for answers without explanations. For each question, place a box aroun

NAME:
Quiz #1
(3 questions, 10 points each)
Please circle the correct answer.
1. Assume that an investment which pays A in annual installments has present value P
given an annual interest rate r. Suppose now that the interest rate r increases, but the
pay

IEMS 326
Northwestern University
Spring 2012
Steven Golbeck
Final Review
1. Suppose you decide to buy a $200,000 condo. You make a 10% down payment and
take out a 30-year xed-rate mortgage at 6%.
(a) What is your monthly payment?
Find the annuity payment

IEMS 326, Spring 2012
Homework #4
(2 questions, 50 points total)
Due Friday, May 4
Please put your name at the top of each page of your work. Show all work; no credit will
be given for answers without explanations. For each question, place a box around yo

IEMS 326, Spring 2012
Homework #5
(4 questions, 100 points total)
Due Wednesday, May 23
Please put your name at the top of each page of your work. Show all work; no credit will be given
for answers without explanations. For each question, place a box arou

IEMS 326, Spring 2012
Homework #6
(5 questions, 100 points total)
Due Friday, June 1
Please put your name at the top of each page of your work. Show all work; no credit will be given
for answers without explanations. For each question, place a box around

1.
2.
3.
4.
5.
(15 Points) Consider a 20-year mortgage with a 7% interest rate and a 25% down payment. You
can afford a $1500 monthly payment.
a. How expensive of a house can you buy?
b. How large is the down payment?
(10 Points) Bluth Industries just bou

IEMS 326
Northwestern University
Spring 2012
Steven Golbeck
Exam #1
(4 questions, 100 points total)
Friday, April, 13
Please put your name at the top of each page of your work. Show all work; no credit will
be given for answers without explanations.
Pleas

IEMS 326
Northwestern University
Spring 2012
Steven Golbeck
Exam #2 Review
1. Suppose you plan to buy a car in 2 years. The model you want costs $20,000 now, and
you expect its price to rise with ination, which will run at a constant annual rate of
3% ove

IEMS 326
Northwestern University
Spring 2012
Steven Golbeck
Exam #2
(5 questions, 100 points total)
Monday, May, 7
Please put your name at the top of each page of your work. Show all work; no credit will
be given for answers without explanations.
Please w