Assignment 8Answer Key

20. a) 1000
b) 500
c) 600
d) 900
e) 5900

10000
23. XS
X=676.43
10 .07
25. SF payment years 1-5=280; SF payment years 6-10= 400

280 S 20

.04

120 S10

.04

8337.86 1440.73 9778.59

12000 9778.59 2221.41

38.
Pr ice 100a10
100a10

.05

3( Da )10

.05

3( 20)(10 a10

.05

.05

600 308.87 908.87

1.13 1.04 3
.10 .04

40. A) OB3 20001.10 400

3

b) OB2 1564.00

.035

After 5 years, balance is 10000a 10

Excess interest 10000 a 10

.035

(1.05) 5 10000s 5

(1.05) s 5
5

.035

5736.10
55.
10000
757.19
S10 .05

b) Balance5 757.19 S
4393.14
5 .05
P

10000 4393.14(1.04) 5
826.40

S
5 .04

1.

1287.76

P3 OB2 OB3 276.24

54.
The initial fund is 10000a 10

a ) Deposit

.05

a5

.035

.05

TotalAnnua lPayment .082435(15000)

15000
1236.48 1189 .09 2425.57
S10 .050625

PS 6 8100.82
NetLoanAmount 15000 8100.82 6899.18
NetInt 6 1236.48 iPS 5 1236.48 .050625(6578.68) 333.05
Pr incip Re paid 1189 .09 333.05 1522.14
or
8100.82 6578.68 1522.14

2. 1.03 1 / 6 1.004938622

1469.79 / 4 367.45 1.03

n 686.4 weeks

175000 Xa180
1 / 26

.004938

1.001137523

In months, this would be approx 686.4x12/52=158.4,

X 1469.79
175000 367.45a n

.0011375

but not 686.4/4=171.6