MATHEMATICS WITH APPL....-ACCESS
12th Edition
ISBN: 9780135240687
Author: Lial
Publisher: PEARSON
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Chapter 5.2, Problem 15E
To determine
To calculate: The compound amount and the interest earned for an invested amount of $75,000 at a rate of 0.90% which is compounded quarterly for four years.
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Students have asked these similar questions
1. Consider the following preference ballots:
Number of voters
Rankings 6 5 4 2
1st choice A DCB
DC
2nd choice B B D
3rd choice DCBD
4th choice CA
AAA
For each of the four voting systems we have studied, determine who would win the election
in each case. (Remember: For plurality with runoff, all but the top two vote-getters are
simultaneously eliminated at the end of round 1.)
Practice
k Help
ises
A
96
Anewer The probability that you get a sum of at least 10 is
Determine the number of ways that the specified event can occur when
two number cubes are rolled.
1. Getting a sum of 9 or 10
3. Getting a sum less than 5
2. Getting a sum of 6 or 7
4. Getting a sum that is odd
Tell whether you would use the addition principle or the multiplication
principle to determine the total number of possible outcomes for the
situation described.
5. Rolling three number cubes
6. Getting a sum of 10 or 12 after rolling three number cubes
A set of playing cards contains four groups of cards designated by color
(black, red, yellow, and green) with cards numbered from 1 to 14 in each
group. Determine the number of ways that the specified event can occur
when a card is drawn from the set.
7. Drawing a 13 or 14
9. Drawing a number less than 4
8. Drawing a yellow or green card
10. Drawing a black, red, or green car
The spinner is divided into equal parts.
Find the specified…
Problem 1.We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%.
We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.(d) We assume that you sell the American put to a market participant A for the pricefound in (b). Explain how you act on the market…
Chapter 5 Solutions
MATHEMATICS WITH APPL....-ACCESS
Ch. 5.1 - Checkpoint 1
Find the simple interest for each...Ch. 5.1 - Checkpoint 2
For the given bonds, find the...Ch. 5.1 - Checkpoint 3
Find each future value.
(a) $1000 at...Ch. 5.1 - Checkpoint 4
You lend a friend $500. She agrees to...Ch. 5.1 - Checkpoint 5
Find the present value of the given...Ch. 5.1 - Checkpoint 6
Jerrell Davis is owned $19,500 by...Ch. 5.1 - Checkpoint 7
A firm accepts a $21,000 note due in...Ch. 5.1 - ✓ Checkpoint 8
The maturity times and discount...Ch. 5.1 - Checkpoint 9
Find the actual interest rate paid by...Ch. 5.1 - Unless stated otherwise, "interest" means simple...
Ch. 5.1 - Find the interest on each of these loans. (See...Ch. 5.1 - Find the interest on each of these loans. (See...Ch. 5.1 - Prob. 4ECh. 5.1 - Prob. 5ECh. 5.1 - Find the interest on each of these loans. (See...Ch. 5.1 - Find the interest on each of these loans. (See...Ch. 5.1 - Prob. 8ECh. 5.1 - Prob. 9ECh. 5.1 - Find the interest on each of these loans. (See...Ch. 5.1 - Corporate Bonds For each of the given corporate...Ch. 5.1 - Corporate Bonds For each of the given corporate...Ch. 5.1 - Corporate Bonds For each of the given corporate...Ch. 5.1 - Corporate Bonds For each of the given corporate...Ch. 5.1 - Prob. 15ECh. 5.1 - Corporate Bonds For each of the given corporate...Ch. 5.1 - Find the future value of each of these loans. (See...Ch. 5.1 - Find the future value of each of these loans. (See...Ch. 5.1 - Find the future value of each of these loans. (See...Ch. 5.1 - Prob. 20ECh. 5.1 - Prob. 21ECh. 5.1 - Prob. 22ECh. 5.1 - Find the present value of each future amount. (See...Ch. 5.1 - Prob. 24ECh. 5.1 - Find the present value of each future amount. (See...Ch. 5.1 - Find the present value of each future amount. (See...Ch. 5.1 - Treasury Bills The given U.S. Treasury bills were...Ch. 5.1 - Prob. 28ECh. 5.1 - Treasury Bills The given U.S. Treasury bills were...Ch. 5.1 - Treasury Bills The given U.S. Treasury bills were...Ch. 5.1 - Prob. 31ECh. 5.1 - Prob. 32ECh. 5.1 - Prob. 33ECh. 5.1 - Treasury Bills Historically, treasury bills...Ch. 5.1 - Work the following applied problems. Tax Penalty...Ch. 5.1 - Work the following applied problems. Family Loan...Ch. 5.1 - Work the following applied problems. Savings...Ch. 5.1 - Prob. 38ECh. 5.1 - Work the following applied problems.
39. Money...Ch. 5.1 - Work the following applied problems. CD A $100,000...Ch. 5.1 - Work the following applied problems. Student Loan...Ch. 5.1 - Prob. 42ECh. 5.1 - Work the following applied problems. Construction...Ch. 5.1 - Prob. 44ECh. 5.1 - Work the following applied problems. Computing...Ch. 5.1 - Prob. 46ECh. 5.1 - Prob. 47ECh. 5.1 - Work the following applied problems.
48. Treasury...Ch. 5.1 - Prob. 49ECh. 5.1 - Work the following applied problems.
50. Treasury...Ch. 5.1 - Prob. 51ECh. 5.1 - Prob. 52ECh. 5.1 - Prob. 53ECh. 5.1 - Prob. 54ECh. 5.1 - Prob. 55ECh. 5.1 - Finance Work these problems. (See Example...Ch. 5.1 - Finance Work these problems. (See Example...Ch. 5.1 - Finance Work these problems. (See Example...Ch. 5.2 - Checkpoint 1
Extend the chart in the text by...Ch. 5.2 - Checkpoint 2
Suppose $17,000 is deposited at 4%...Ch. 5.2 - Checkpoint 3 Find the future value for these money...Ch. 5.2 - Checkpoint 4
Find the compound amount for $7500...Ch. 5.2 - Checkpoint 5
Find the face value of the zero...Ch. 5.2 - Prob. 6CPCh. 5.2 - Prob. 7CPCh. 5.2 - Prob. 8CPCh. 5.2 - Prob. 9CPCh. 5.2 - Prob. 10CPCh. 5.2 - Prob. 11CPCh. 5.2 - Interest on the zero-coupon bonds here is...Ch. 5.2 - Interest on the zero-coupon bonds here is...Ch. 5.2 - Prob. 3ECh. 5.2 - Interest on the zero-coupon bonds here is...Ch. 5.2 - Interest on the zero-coupon bonds here is...Ch. 5.2 - Prob. 6ECh. 5.2 - Find the compound amount and the interest earned...Ch. 5.2 - Prob. 8ECh. 5.2 - Find the compound amount and the interest earned...Ch. 5.2 - Find the compound amount and the interest earned...Ch. 5.2 - Money Market Accounts The following money market...Ch. 5.2 - Money Market Accounts The following money market...Ch. 5.2 - Money Market Accounts The following money market...Ch. 5.2 - Money Market Accounts The following money market...Ch. 5.2 - Prob. 15ECh. 5.2 - Prob. 16ECh. 5.2 - Find the interest rate (with annual compounding)...Ch. 5.2 - Prob. 18ECh. 5.2 - Find the interest rate (with annual compounding)...Ch. 5.2 - Prob. 20ECh. 5.2 - Find the compound amount and the interest earned...Ch. 5.2 - Prob. 22ECh. 5.2 - Prob. 23ECh. 5.2 - Find the compound amount and the interest earned...Ch. 5.2 - Prob. 25ECh. 5.2 - Prob. 26ECh. 5.2 - Prob. 27ECh. 5.2 - Prob. 28ECh. 5.2 - Find the APY corresponding to the given nominal...Ch. 5.2 - Prob. 30ECh. 5.2 - Prob. 31ECh. 5.2 - Prob. 32ECh. 5.2 - Find the present value of the given future...Ch. 5.2 - Find the present value of the given future...Ch. 5.2 - Find the present value of the given future...Ch. 5.2 - Prob. 36ECh. 5.2 - Prob. 37ECh. 5.2 - Prob. 38ECh. 5.2 - Prob. 39ECh. 5.2 - Prob. 40ECh. 5.2 - Prob. 41ECh. 5.2 - Prob. 42ECh. 5.2 - Finance For Exercises 43 and 44, assume an annual...Ch. 5.2 - Prob. 44ECh. 5.2 - Prob. 45ECh. 5.2 - Finance For Exercises 43 and 44, assume an annual...Ch. 5.2 - 51. Lora Reilly has inherited $10,000 from her...Ch. 5.2 - 52. Which of these 20-year zero-coupon bonds will...Ch. 5.2 - 53. As the prize in a contest, you are offered...Ch. 5.2 - Prob. 50ECh. 5.2 - 59. A company has agreed to pay $2.9 million in 5...Ch. 5.2 - Prob. 52ECh. 5.2 - Prob. 53ECh. 5.2 - 62. If inflation is 2.4% per year and a washing...Ch. 5.2 - Prob. 55ECh. 5.2 - Prob. 56ECh. 5.2 - Economics Use the approach in Example 8 to find...Ch. 5.2 - Prob. 58ECh. 5.2 - 67. The consumption of electricity has increased...Ch. 5.2 - Prob. 60ECh. 5.2 - Prob. 61ECh. 5.2 - Prob. 62ECh. 5.2 - Work the following applied problems.
63. On...Ch. 5.2 - Work the following applied problems. On January 1,...Ch. 5.3 - Checkpoint 1
Complete these steps for an annuity...Ch. 5.3 - Prob. 2CPCh. 5.3 - Checkpoint 3 Find the total value of the account...Ch. 5.3 - Prob. 4CPCh. 5.3 - Prob. 5CPCh. 5.3 - Checkpoint 6
(a) Ms. Black deposits $800 at the...Ch. 5.3 - Note: Unless stated otherwise, all payments are...Ch. 5.3 - Prob. 2ECh. 5.3 - Investing As of July 2016, banrate.com advertised...Ch. 5.3 - Investing As of July 2016, banrate.com advertised...Ch. 5.3 - Investing As of July 2016, banrate.com advertised...Ch. 5.3 - Investing As of July 2016, banrate.com advertised...Ch. 5.3 - Investing As of July 2016, banrate.com advertised...Ch. 5.3 - Investing As of July 2016, banrate.com advertised...Ch. 5.3 - Find the final amount (rounded to the nearest...Ch. 5.3 - Prob. 10ECh. 5.3 - Prob. 11ECh. 5.3 - Find the final amount (rounded to the nearest...Ch. 5.3 - Find the amount of each payment to be made into a...Ch. 5.3 - Prob. 14ECh. 5.3 - Prob. 15ECh. 5.3 - Find the amount of each payment to be made into a...Ch. 5.3 - Find the amount of each payment to be made into a...Ch. 5.3 - Prob. 18ECh. 5.3 - Find the interest rate needed for the sinking fund...Ch. 5.3 - Prob. 20ECh. 5.3 - Prob. 21ECh. 5.3 - Find the interest rate needed for the sinking fund...Ch. 5.3 - Prob. 23ECh. 5.3 - Prob. 24ECh. 5.3 - Prob. 25ECh. 5.3 - Investing In 2009, the average savings account...Ch. 5.3 - Prob. 27ECh. 5.3 - Investing In 2009, the average savings account...Ch. 5.3 - Prob. 29ECh. 5.3 - Prob. 30ECh. 5.3 - Prob. 31ECh. 5.3 - Prob. 32ECh. 5.3 - Prob. 33ECh. 5.3 - Prob. 34ECh. 5.3 - Prob. 35ECh. 5.3 - Prob. 36ECh. 5.3 - 37. Cigarette Costs The website www.theawl.com...Ch. 5.3 - 37. Cigarette Costs The website www.theawl.com...Ch. 5.3 - 39. Investing Mary Dodge deposits $12,000 at the...Ch. 5.3 - 40. Investing Peter Healy deposits $800 at the end...Ch. 5.3 - Investing At the end of each quarter, a...Ch. 5.3 - Retirement Planning Miguel Handley is 45 years...Ch. 5.3 - 43. A mother opened an investment account for her...Ch. 5.3 - Prob. 44ECh. 5.3 - Prob. 45ECh. 5.3 - Prob. 46ECh. 5.3 - 47. David Horwitz needs $10,000 in 8...Ch. 5.3 - 48. Harv’s Meats knows that it must buy a new...Ch. 5.3 - 49. Barbara Margolius wants to buy a $24,000 car...Ch. 5.3 - Prob. 50ECh. 5.3 - 51. Diane Gray sells some land in Nevada. She will...Ch. 5.3 - Prob. 52ECh. 5.3 - 53. To save for retirement, Karla Harby put $300...Ch. 5.3 - Prob. 54ECh. 5.3 - Prob. 55ECh. 5.3 - Prob. 56ECh. 5.4 - Checkpoint 1 An insurance company offers to pay...Ch. 5.4 - Prob. 2CPCh. 5.4 - Prob. 3CPCh. 5.4 - Prob. 4CPCh. 5.4 - Prob. 5CPCh. 5.4 - Prob. 6CPCh. 5.4 - Prob. 1ECh. 5.4 - Prob. 2ECh. 5.4 - Find the present value of each ordinary annuity....Ch. 5.4 - Find the present value of each ordinary annuity....Ch. 5.4 - Find the present value of each ordinary annuity....Ch. 5.4 - Find the present value of each ordinary annuity....Ch. 5.4 - Find the amount necessary to fund the given...Ch. 5.4 - Find the amount necessary to fund the given...Ch. 5.4 - Find the amount necessary to fund the given...Ch. 5.4 - Find the amount necessary to fund the given...Ch. 5.4 - Prob. 11ECh. 5.4 - Find the payment made by the ordinary annuity with...Ch. 5.4 - Prob. 13ECh. 5.4 - Find the payment made by the ordinary annuity with...Ch. 5.4 - Find the payment necessary to amortize each of the...Ch. 5.4 - Prob. 16ECh. 5.4 - Prob. 17ECh. 5.4 - Prob. 18ECh. 5.4 - Find the payment necessary to amortize each of the...Ch. 5.4 - Find the payment necessary to amortize each of the...Ch. 5.4 -
Mortgages In October 2016, the mortgage interest...Ch. 5.4 -
Mortgages In October 2016, the mortgage interest...Ch. 5.4 -
Mortgages In October 2016, the mortgage interest...Ch. 5.4 - Mortgages In October 2016, the mortgage interest...Ch. 5.4 -
Loans Find the monthly payment and estimate the...Ch. 5.4 - Loans Find the monthly payment and estimate the...Ch. 5.4 -
Loans Find the monthly payment and estimate the...Ch. 5.4 - Prob. 28ECh. 5.4 - Prob. 29ECh. 5.4 - Prob. 30ECh. 5.4 - Prob. 31ECh. 5.4 - Prob. 32ECh. 5.4 - Prob. 33ECh. 5.4 - Prob. 34ECh. 5.4 - Prob. 35ECh. 5.4 - Prob. 36ECh. 5.4 - Prob. 37ECh. 5.4 - Prob. 38ECh. 5.4 - Finance Work the following applied problems.
49. A...Ch. 5.4 - Prob. 40ECh. 5.4 - Finance A student education loan has two repayment...Ch. 5.4 - Finance A student education loan has two repayment...Ch. 5.4 - Finance Use the formula for the approximate...Ch. 5.4 - Prob. 44ECh. 5.4 - Finance Use the formula for the approximate...Ch. 5.4 - 56. Mohsen Manouchehri will purchase a $230,000...Ch. 5.4 - Prob. 47ECh. 5.4 - Prob. 48ECh. 5.4 - Prob. 49ECh. 5.4 - Prob. 50ECh. 5.4 - Prob. 51ECh. 5.4 - Prob. 52ECh. 5.4 - Auto Loan Jessica Walters takes out a 6-year...Ch. 5.4 -
54. Mortgage Ling Wu takes out a 30-year...Ch. 5.4 - Prob. 55ECh. 5.4 - Prob. 56ECh. 5.4 - Prob. 57ECh. 5.4 - Prob. 58ECh. 5 - Find the simple interest for the following...Ch. 5 - Find the simple interest for the following...Ch. 5 - Find the simple interest for the following...Ch. 5 - Find the simple interest for the following...Ch. 5 - Find the semiannual (simple) interest payment and...Ch. 5 - Prob. 6RECh. 5 - Find the maturity value for each simple interest...Ch. 5 - Find the maturity value for each simple interest...Ch. 5 - Prob. 9RECh. 5 - Find the present value of the given future...Ch. 5 - Find the present value of the given future...Ch. 5 - Prob. 12RECh. 5 - Find the present value of the given future...Ch. 5 - Find the present value of the given future...Ch. 5 - Find the compound amount and the amount of...Ch. 5 - Find the compound amount and the amount of...Ch. 5 - Find the compound amount and the amount of...Ch. 5 - Find the compound amount and the amount of...Ch. 5 - Find the amount of compound interest earned by...Ch. 5 - Prob. 20RECh. 5 - Prob. 21RECh. 5 - Prob. 22RECh. 5 - Prob. 23RECh. 5 - Find the APY corresponding to the given nominal...Ch. 5 - Find the present value of the given amounts at the...Ch. 5 - Find the present value of the given amounts at the...Ch. 5 - Find the present value of the given amounts at the...Ch. 5 - Find the present value of the given amounts at the...Ch. 5 - Find the price that a purchaser should be willing...Ch. 5 - Prob. 30RECh. 5 - Prob. 31RECh. 5 - Prob. 32RECh. 5 - Find the future value of each annuity.
33. $4000...Ch. 5 - Find the future value of each annuity.
34. $233...Ch. 5 - Find the future value of each annuity.
35. $672...Ch. 5 - Find the future value of each annuity.
36. $11,900...Ch. 5 - Prob. 37RECh. 5 - Prob. 38RECh. 5 - Find the amount of each payment that must be made...Ch. 5 - Prob. 40RECh. 5 - Find the amount of each payment that must be made...Ch. 5 - Prob. 42RECh. 5 - Find the present value of each ordinary...Ch. 5 - Find the present value of each ordinary...Ch. 5 - Find the present value of each ordinary...Ch. 5 - Find the amount necessary to fund the given...Ch. 5 - Find the amount necessary to fund the given...Ch. 5 - Find the amount necessary to fund the given...Ch. 5 - Find the payment for the ordinary annuity with the...Ch. 5 - Find the payment for the ordinary annuity with the...Ch. 5 - Find the payment for the ordinary annuity with the...Ch. 5 - Find the payment for the ordinary annuity with the...Ch. 5 - Find the amount of the payment necessary to...Ch. 5 - Find the amount of the payment necessary to...Ch. 5 - Find the monthly house payments for the given...Ch. 5 - Prob. 56RECh. 5 - Find the monthly house payments for the given...Ch. 5 - Prob. 58RECh. 5 - Prob. 59RECh. 5 - Prob. 60RECh. 5 - Prob. 61RECh. 5 - Prob. 62RECh. 5 - Prob. 63RECh. 5 - Prob. 64RECh. 5 - Finance Work the following applied...Ch. 5 - Prob. 66RECh. 5 - Finance Work the following applied...Ch. 5 -
Work the following applied...Ch. 5 - Finance Work the following applied problems.
69. A...Ch. 5 - Finance Work the following applied...Ch. 5 - 71. In 3 years, Ms. Nguyen must pay a pledge of...Ch. 5 - 72. To finance the $15,000 cost of their kitchen...Ch. 5 - 73. To expand her business, the owner of a small...Ch. 5 - 74. The Fix family bought a house for $210,000....Ch. 5 -
Work the following applied...Ch. 5 - 76. Dan Hook deposits $400 a month to a retirement...Ch. 5 - Prob. 77RECh. 5 - 78. Eileen Gianiodis wants to retire on $75,000...Ch. 5 - Investing Shelia graduates from college at age 25...Ch. 5 -
Investing Hector manages to deposit $300 at the...Ch. 5 - Investing Suppose Shelia in Exercise 1 stops...Ch. 5 - Investing Suppose Hector in Exercise 2 stops...Ch. 5 -
5. Investing The rate of return can make a huge...Ch. 5 -
6. Investing If $10,000 is invested for 36 years...Ch. 5 - Prob. 1EPCh. 5 - Prob. 2EP
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