Math 2580 Test Math 2580 Test #2 Answers
For each question, there are 3 answers because there are 3 versions of the test.
To find your version, look at question #1:
ver.1 has 1995, ver.2 has 1996 and ver.3 has 1997.
 
marks: 2 marks deducted for each error in your method; 1 mark deducted for a purely numerical error.

  1. 300s73|0.005 = $26352.27.

    200s61|0.005 = $14223.78.

    200s49|0.005 = $11073.66.

  2. 5000a9|0.05(1.05)+5000a9|0.07(1.07)(1.05)-9 = $59784.87. Note: There are other ways of doing this such as 5000+5000a9|0.05+5000a8|0.07(1.05)-9.

    5000a8|0.05(1.05)+5000a8|0.07(1.07)(1.05)-8 = $55554.48. Note: There are other ways of doing this such as 5000+5000a8|0.05+5000a7|0.07(1.05)-8.

    5000a10|0.05(1.05)+5000a10|0.07(1.07)(1.05)-10 = $63607.61. Note: There are other ways of doing this such as 5000+5000a10|0.05+5000a9|0.07(1.05)-10.

  3. 70000 = 600an|0.005; 1-1.005-n = 70000(0.005)/600 = 0.5833333; 1.005n = 2.4; n = log(2.4)/log(1.005) = 175.53. 175 regular payments. Final smaller payment X = (70000-600a175|0.005)(1.005)176 = $319.04.

    60000 = 500an|0.005; 1-1.005-n = 60000(0.005)/500 = 0.6; 1.005n = 2.5; n = log(2.5)/log(1.005) = 183.72. 183 regular payments. Final smaller payment X = (60000-500a183|0.005)(1.005)184 = $358.21.

    50000 = 400an|0.005; 1-1.005-n = 50000(0.005)/400 = 0.625; 1.005n = 2.666666; n = log(2.666666)/log(1.005) = 179.66. 196 regular payments. Final smaller payment X = (50000-400a196|0.005)(1.005)197 = $262.57.

  4. 3+3/i where (1+i)4 = 1.10; 3+3/0.024113689 = $127.41.

    4+4/i where (1+i)4 = 1.10; 4+4/0.024113689 = $169.88.

    5+5/i where (1+i)4 = 1.10; 5+5/0.024113689 = $212.35.

  5. (1000/1.1)a15|i where 1+i = (1+0.05/4)4/1.1 = 0.955404852. So i = -0.044595148. Answer = $20026.37.

    (1000/1.1)a20|i where 1+i = (1+0.05/4)4/1.1 = 0.955404852. So i = -0.044595148. Answer = $30380.33.

    (1000/1.1)a10|i where 1+i = (1+0.07/4)4/1.1 = 0.974417301. So i = -0.025582699. Answer = $10512.65.

  6. 6s4|i-4s2|i+5a2|i

    4s4|i-2s2|i+3a2|i

    5s4|i-4s2|i+2a2|i


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On 12 Feb 2001, 13:01.