Revision as of 23:59, 26 November 2023 by Admin (Created page with "'''Solution: B''' Effective rate per month is <math>.12 / 12=</math> .01. There are <math>25 \times 12=300</math> months. Then <math display="block"> 30000=K a_{\overline{300} \mid .01}=K \frac{1-v^{300}}{.01}=K \frac{1-1.01^{-300}}{.01}=K(94.94655) . </math> Thus <math>K=\frac{30000}{94.94655}=315.97</math>. '''References''' {{cite web |url=https://web2.uwindsor.ca/math/hlynka/392oldtests.html |last=Hlynka |first=Myron |website=web2.uwindsor.ca | title = Univers...")
Exercise
ABy Admin
Nov 26'23
Answer
Solution: B
Effective rate per month is [math].12 / 12=[/math] .01. There are [math]25 \times 12=300[/math] months. Then
[[math]]
30000=K a_{\overline{300} \mid .01}=K \frac{1-v^{300}}{.01}=K \frac{1-1.01^{-300}}{.01}=K(94.94655) .
[[/math]]
Thus [math]K=\frac{30000}{94.94655}=315.97[/math].
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.