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12 Sep 2018
7. (a) Assume R dollars are deposited into an ordinary annuity at the end of each month where interest is 9% APR compounded monthly. Calculate the least whole number of years that it will take the future value of the annuity to grow to 1,000R dollars. 5 points) (b) Suppose now that R dollars are deposited into another ordinary annuity at the end of each month for 15 years at an interest rate of z% APR compounded monthly. At the end of the 15 years it is known that the value of the annuity is 500R. State the function f(x) that you would apply Newton's method to in order to approximate the value of a. (4 points) (c) What is the maximum amount of compound interest (expressed as a percentage, rounded to one decimal) that can be earned on a principal of P dollars for exactly 2,000 days at 7.4% APR? (use 1 year = 365 days) [4 points)
7. (a) Assume R dollars are deposited into an ordinary annuity at the end of each month where interest is 9% APR compounded monthly. Calculate the least whole number of years that it will take the future value of the annuity to grow to 1,000R dollars. 5 points) (b) Suppose now that R dollars are deposited into another ordinary annuity at the end of each month for 15 years at an interest rate of z% APR compounded monthly. At the end of the 15 years it is known that the value of the annuity is 500R. State the function f(x) that you would apply Newton's method to in order to approximate the value of a. (4 points) (c) What is the maximum amount of compound interest (expressed as a percentage, rounded to one decimal) that can be earned on a principal of P dollars for exactly 2,000 days at 7.4% APR? (use 1 year = 365 days) [4 points)
Sixta KovacekLv2
14 Sep 2018
