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

File translated from TEX by TTH, version 1.98.
On 12 Feb 2001, 13:01.