Math 252 Mathematical Interest Theory
Homework#2 2.21,3,4 2.31,3,6 2.41,3,5 2.51 2.6 3,4 2.7 1,2
Examples
1. With compound interest, how long does it take for $1900 to grow to $3100 at 9% effective?
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Doubling Money and the
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Math 252 Mathematical Interest Theory
Homeworki7 5.2 2,4,5 5.3 2,3,4,5 5.4 1,2, 3,5 5.5 2,4,5
Examples
1. You borrow $80,000 at 4.8% convertible monthly. You repay the loan with payments at the end
of each month for 15 years. What proportion
Math 252 Mathematical Interest Theory
HW #1 1
l) The interest rate is i = 0.25. In one year, you need to buy a 1-year zerocoupon bond which will
pay off a loan of $100,000 one year later. You have $64,000 in cash. You can invest in 1-year
zero~coupon $10
Math 252 Mathematical Interest Theory
Homework #5 3.9 5, 6 3.10 1, 2,4
Examples
1. You make deposits at the end of each month for ve years. The interest rate is 6% convertible
monthly. The rst deposit is a $500. How much will you accumulate over the ve