3. Ons can receive one of the following payment streams.(i.) 980 at time 11(ii.) 200 at time 0, 450 at time n, and 300 at time 2nThe present values of these payment streams are equal at an effective rate of interest i. Assumingvn = 0.82642, calculate i.

Two payment streams: (i) 980 at time 11 (ii) 200 at time 0, 450 at time n and 300 at time 2n. vn…

Answered: 3. Ons can receive one of the following…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

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Question 14:- To pay off a loan of $4000 at j12= 7.2%, Ms. Fil agrees to make three payments in 3, 7, and 12 months, respectively. The second and third payments are to be double the first. What is the size of first payment? th $22 5 0 Thoy are offered
15
Hw.103.
We know the following two commands in Excel: PMT(rate, nper, PV, FV) FV(rate, nper, pmt, PV) Which of the following Excel commands gives the monthly payment on a house that cost $255,000 with a down payment of $22,725. The loan was a conventional 30-year loan with an annual interest rate of 3.1%. 1 =PMT(0.031/12,30,-255000,-22725) 2 =FV(0.031/12,30,-255000,-22725) 3 =PMT(0.031/12,360,-232275,0) 4 =FV(3.1/12,360,-22725,-255000) 5 =PMT(3.1/12,360,0,-232275)
Consider a cash flow of payments C₁, C₂, ..., Cn at the end of years t₁, t2, ..., tn. Suppose the nominal interest rate is r = 0.04 and that interest is compounded monthly. Tick all those statements that are correct. O a. The convexity is the same as the duration squared in this case. 300 O b. The effective duration is equal to 301 times the duration in this case. The effective duration is equal to 25 times the duration in this case. 26 Od. The duration and the effective duration are the same for this example. O e. If all the above cash payments are the same then the effective duration is equal to the duration. O c.
Emma wants to donate $1,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of j4=2.47% p.a. effective and the first scholarship will be first awarded 2.5 years after the date of the donation. (b) Assume that the fund's earnings rate rate has changed from j4=2.47% to j4=2.22% one year before the first scholarship payment. How much does Emma need to add to the fund at that time (one year before the first scholarship payment) to ensure that scholarship amount will be unchanged (rounded to two decimal places)? a. 120871.62 b. 117931.61 c. 116810.57 d. 113655.15
3. Sloane wants to purchase a package of tennis memorabilia in 6 years. The package costs 350 today but increases its price by 4.5% per year. Sloan decides to deposit 28 into an account at the beginning of each year for 6 years. She also deposits an additional amount Y at the beginning of years 3, 4, 5, and 6 to meet her goal. Calculate Y if the annual effective rate of interest is 9%.
0.049 With PV = 100,000, i = 12 and n = 276, we are now ready to find the monthly payment PMT, by substituting these known values into the formula. Simplify and round the result to the nearest cent. PMT = PV 1 (1 + i)- 0.049 12 PMT = -276 0.049 1 - 1 + 12 Thus, the monthly payment on a 23-year, $100,000 mortgage at 4.9% per year is $
2. For a 3-year term insurance at age x with death benefit of 1,000 (with death benefit payable at end of year), you are given : i. Px = .97 ii. i= 6% The present value of death benefits at age x is 153. The net level annual premium is 56 (with premium payable in advance for 3 years subject to survival). Calculate px+2 iii. iv.
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Given: 6 = 0.08; Mortality is uniformly distributed throughout life (DeMoivre) 7th w = 100. Find the APV of a continuous 10-year certain and life annuity to (50). a. 11.43 b. 12.06 c. 9.92 d. 10.03 e. 10.99

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3. Ons can receive one of the following payment streams. (i.) 980 at time 11 (ii.) 200 at time 0, 450 at time n, and 300 at time 2n The present values of these payment streams are equal at an effective rate of interest i. Assuming v=0.82642, calculate i.