Revision as of 18:46, 26 November 2023 by Admin (Created page with "Find the present value of $100 payable at the beginning of each three month period for the next five years, when interest is at the rate of 6% per annum, compounded quarterly. <ul class="mw-excansopts"> <li>1413</li> <li>1717</li> <li>1723</li> <li>1743</li> <li>1816</li> </ul> '''References''' {{cite web |url=https://web2.uwindsor.ca/math/hlynka/392oldtests.html |last=Hlynka |first=Myron |website=web2.uwindsor.ca | title = University of Windsor Old Tests 62-392 Theor...")
ABy Admin
Nov 26'23
Exercise
Find the present value of $100 payable at the beginning of each three month period for the next five years, when interest is at the rate of 6% per annum, compounded quarterly.
- 1413
- 1717
- 1723
- 1743
- 1816
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
ABy Admin
Nov 26'23
Solution: D
5 years=20 quarters. Interest rate is .06/4=.15 per quarter.
[[math]]
P V=100 \ddot{a}_{\overline{20} \mid .015}=100(1.015) a_{\overline{20} \mid .015}=100(1.015) \frac{1-1.015^{-20}}{.015}=1742.62
[[/math]]
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.