1. It is known that ()a(t) is the form of 2+ kt2+b. If $300300 invested at...

 

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1. It is known that ()a(t) is the form of 2+ kt2+b. If $300300 invested at time 00 accumulates to $384384 at time 22, find the accumulated value of $636636 at time 66 if it is invested at time 44. (Hint: What is bb?) Question 2 Ed has made an investment that will return a fixed percentage simple interest. He knows that he started with $13000 on March 10, and that on May 16, the investment is worth $13224.31. What annual rate of interest is he receiving? Question 3 It is known that $2744 invested in compound interest for 3 years will earn $1352 interest. Find the accumulated value of $76832 invested at the same rate of compound interest for 4 years. Question 4 Find the accumulated value of $7000 at the end of 6 years and 4 months invested at a rate of 4.6% compound interest per annum (1) Assuming compound interest throughout. Your answer is $. (2) Assuming simple interest during the final fractional period. Your answer is $ . Question 5 Bubba Jones has an offer to play pro football in the Arena League. Part of his contract calls for him to receive a signing bonus, payable as follows: $ 100,000 immediately, $70000 in two years, and $170000 in 6 years. What is the present value of the signing bonus, assuming annual 6.8% effective interest? Question 6 Find d4d4 if the rate of simple interest is 5% d4d4 = %. b) Find d4d4 if the rate of simple discount is 5% d4d4 = %. Question 7 Find the annual effective rate of discount at which a payment of $300 immediately and $500 one year from today will accumulates to $1100 two years from today. Question 8 The amount of interest earned on AA is $400, while the equivalent discount on AA is $250. Find AA. Question 9 On January 1, 2004, a person invested $ 1,000 in a fund for which the force of interest at time tt is given by ôt=4+5t50õt=4+5t50, where tt is the number of years since January 1, 2004. Determine the accumulated value of the investment on January 1, 2005. Accumulated value of the investment = $ Question 10 On January 1, 2004, Sam invests $ 1000 in a fund for which the force of interest at time t is expressed by &t=(0.1)(t-1)2õt=(0.1)(t-1)2, where t is the number of years since January 1, 2004. Calculate the accumulated value of the fund on January 1, 2006. Question 11 Find the level effective rate of interest over a three-year period which is equivalent an effective rate of discount 6% the first year, 11% the second year, and 9% the third year. Question 12 In Fund XX money accumulates at a force of interest St=0.019t+0.04öt=0.019t+0.04 In fund YY money accumulates at an annual effective interest rate i. An amount of 11 is invested in each fund and 10 years later the values of Fund XX and Fund YY are equal. Calculate the value of Fund YY at the end of 1.5 years. 1. It is known that ()a(t) is the form of 2+ kt2+b. If $300300 invested at time 00 accumulates to $384384 at time 22, find the accumulated value of $636636 at time 66 if it is invested at time 44. (Hint: What is bb?) Question 2 Ed has made an investment that will return a fixed percentage simple interest. He knows that he started with $13000 on March 10, and that on May 16, the investment is worth $13224.31. What annual rate of interest is he receiving? Question 3 It is known that $2744 invested in compound interest for 3 years will earn $1352 interest. Find the accumulated value of $76832 invested at the same rate of compound interest for 4 years. Question 4 Find the accumulated value of $7000 at the end of 6 years and 4 months invested at a rate of 4.6% compound interest per annum (1) Assuming compound interest throughout. Your answer is $. (2) Assuming simple interest during the final fractional period. Your answer is $ . Question 5 Bubba Jones has an offer to play pro football in the Arena League. Part of his contract calls for him to receive a signing bonus, payable as follows: $ 100,000 immediately, $70000 in two years, and $170000 in 6 years. What is the present value of the signing bonus, assuming annual 6.8% effective interest? Question 6 Find d4d4 if the rate of simple interest is 5% d4d4 = %. b) Find d4d4 if the rate of simple discount is 5% d4d4 = %. Question 7 Find the annual effective rate of discount at which a payment of $300 immediately and $500 one year from today will accumulates to $1100 two years from today. Question 8 The amount of interest earned on AA is $400, while the equivalent discount on AA is $250. Find AA. Question 9 On January 1, 2004, a person invested $ 1,000 in a fund for which the force of interest at time tt is given by ôt=4+5t50õt=4+5t50, where tt is the number of years since January 1, 2004. Determine the accumulated value of the investment on January 1, 2005. Accumulated value of the investment = $ Question 10 On January 1, 2004, Sam invests $ 1000 in a fund for which the force of interest at time t is expressed by &t=(0.1)(t-1)2õt=(0.1)(t-1)2, where t is the number of years since January 1, 2004. Calculate the accumulated value of the fund on January 1, 2006. Question 11 Find the level effective rate of interest over a three-year period which is equivalent an effective rate of discount 6% the first year, 11% the second year, and 9% the third year. Question 12 In Fund XX money accumulates at a force of interest St=0.019t+0.04öt=0.019t+0.04 In fund YY money accumulates at an annual effective interest rate i. An amount of 11 is invested in each fund and 10 years later the values of Fund XX and Fund YY are equal. Calculate the value of Fund YY at the end of 1.5 years.

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Solution 1 Investment value at time 0 300300 Maturity value at time 22 384384 Time taken 22 Rate of interest is computed as follows Maturity value Inv... View the full answer