Math 2580 A Test Math 2580 A Test #3 Answers
For each question, there are 2 answers because there are 2 versions of the test.
To find your version, look at question #2:
ver.1 has a mortgage at j2 = 6%, ver.2 has a mortgage at j2 = 7%.

marks: 2 marks deducted for each error in your method; 1 mark deducted for a purely numerical error.

In cell D3: =A\$2*F2
In cell E3: =C3-E3
In cell F3: =F2-E3

2. (a)i = 1.031/6-1; 100000/a240|i = 712.1884 = \$712.19.

(b) B60 = 100000(1+i)60-712.19s60|i = 84796.06134; j = 1.0351/6-1; B60/a180|j = 757.4403157 = \$757.45.

(a)i = 1.0351/6-1; 100000/a240|i = 769.3106 = \$769.32

(b) B36 = 100000(1+i)36-769.32s36|i = 92252.5749; j = 1.031/6-1; B36/a204|j = 718.6638 = \$718.67.

3. (a) 300000(0.03) + 300000/s20|0.02 = 9000 + 12347.02 = \$21347.02

(b) (20)(21347.02) - 300000 = \$126940.40.

(a) 200000(0.04) + 200000/s20|0.02 = 8000 + 8231.35 = \$16231.35.

(b) (20)(16231.35) - 200000 = \$124627.00.

4. 400 = 1000-1000(1+i)-(20-12+1); (1+i)9 = 1000/600; i = 0.058400073. L = 1000a20|i = \$11620.39.

400 = 1000-1000(1+i)-(20-10+1); (1+i)11 = 1000/600; i = 0.047533856. L = 1000a20|i = \$12726.98.

5. (a) P = 5000+(150-200)a20|0.04 = \$4320.48.

(b) P0 = 5000+(150-175)a20|0.035 = 4644.69. P = 4644.69(1+0.035/2) = \$4725.97.

(c) Q = 4725.97-150/2 = \$4650.97.

(d) q = 4650.97/50 = \$93.02.

(a) P = 5000+(200-150)a20|0.03 = \$5743.87.

(b) P0 = 5000+(200-125)a20|0.025 = 6169.19. P = 6169.19(1+0.025/2) = \$6246.30.

(c) Q = 6246.30-200/2 = \$6146.30.

(d) q = 6146.30/50 = \$122.93.

6. 1103.20 = 30a20|0.025+C(1.025)-20 so C = (1103.20-30a20|0.025)(1.025)20 = \$1041.38.

1101.50 = 30a20|0.025+C(1.025)-20 so C = (1101.50-30a20|0.025)(1.025)20 = \$1038.60.

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On 4 Apr 2001, 15:42.