Directions: This is a take home test. It is due at the beginning of the next class after it is issued. You are allowed to use your textbook, corrected papers for this course, and your notes. You may also use a graphing calculator. You may not use any computer, smartphone, internet site, or any other similar electronic aid. When you put your name on this test you verify that you understand and comply with the rules of this test.
You may work on this test with any member(s) of this class. You may not discuss it with any other person outside of the class. You may discuss questions with RPH.
Do all problems in order on 8.5 x 11 inch paper or graph paper. Problems must be done in the numerical order given. Show all work. Answers without corresponding work may not be graded correct or awarded any partial credit. Present your work neatly, in an organized manner, with detail.
This examination is due at the beginning of class on March 1, 2018. Late papers will not be accepted.
Electronic submissions will not be accepted.
Each of the major questions is worth an equal amount. Your grade will be calculated on a percentage basis (from 0% to 100%). Partial credit may be given.
1.) Calculate the simple interest for an investment with an initial principal of $10,500, an interest
rate of 4.85% per year, and the time period of 3 years and 3 months. Show your work and
2.) Calculate the compound interest for an investment with an initial principal of $10,500, an
interest rate of 4.85% per year, and a time period of 3 years 3 months. Compounding should
be done . Show your work and answer.
3.) Stephanie Garcia must pay a lump sum of $10,500 in 5 years. What amount
deposited today at 3.8% interest compounded annually will amount to $10,500 in 5 years?
(Hint: Use the present value for compound interest formula.) Show your work and correct
4.) What amount would need to be invested weekly (52 weeks per year) to have an investment
worth $1,500,000 in 30 years if the interest rate was 7.5%? Assume that the first investment
would be made at the time that the investment plan was initiated (making this an annuity due).
5.) The Anderson family buys a house for $325,000 with a down payment of $85,000. The family
takes out a 30 year amortized mortgage on the remaining cost of the home at an annual interest
rate of 3.6%. Payments (principal and interest) of equal amount are paid monthly. Find the
amount of the monthly payment needed to amortize this loan. Show your work and correct
6.) Consider the Anderson family’s purchase of a house described in problem #5. At the end of
12 years the Andersons inherit some money and want to pay the remaining balance on the
amortized loan. What would the this remaining balance?
7.) You win a lottery prize that has a total value (after taxes) of $35,850,000. 30 yearly payments of
$1,195,000 would be made if you took the winnings over the 30 year payout with the first
payment being made immediately and the remaining equal payments being made yearly at the
beginning of each year. The lottery would buy an annuity which has an annual interest rate of
5.2%. You elect the alternative and take the cash value of this annuity now. You calculate that
you can make more money by investing the winnings at a higher rate than 5.2%. What is the
cash value of this annuity?
8.) You graduate from college and start work. You set up an investment plan whereby you
contribute $125 from each of your monthly paychecks and get 5.4% interest compounded
monthly. You have your first payment payroll deducted and deposited into the IRA (individual
retirement account) of your first month’s work. If you intend to work for
45 years, what will be the value of this investment when you retire?
9.) You are buying a car that cost $26,500. You make payments of $412 each month for 4 years.
The interest rate charged on the amount owed after you made the down payment is 2.9%
per year. What will be the amount of your down payment?
10.) When you save money in a bank savings account the interest is calculated . This
involves using a formula with e. Assume that the annual interest rate is 3%. If you make a
one- time deposit of $6,800 into this type of bank savings account,
a.) What will be the total value in the account at the end of 5 years and 9 months?
b.) What will be the amount of the interest earned at the end of 5 years and 9 months?
11.) You have steady employment and earn a regular salary. You have saved $5400 that you want
to invest in a certificate of deposit that pays a stated rate (nominal rate) of 4.6%. The interest
on this CD is compounded weekly (52 weeks in a year for banking purposes). What is effective
rate (annual percentage rate, APY)? (Hint: The effect rate should be greater than the nominal
12.) Consider the future value of an ordinary annuity and an annuity due.
a.) Explain the difference between these two types of annuities.
b.) Which of these plans will produce a greater value at the end of the total time period for the
annuity? Why is this so?
(Answer thoroughly using complete sentences.)
13.) Solve the following linear system using your graphing calculator and matrix commands. Give
your answers and describe the process you used (the calculator steps) to find the solution.
Hint: There is a definite solution to this system. It is not unsolvable.
x – y + 5z = -6
3x + 3y – z = 10
x + 2y + 3z = 5
14.) Solve the linear system shown in #13 above using the Gauss-Jordan method. Show all steps
on the left in a single column and to the right show any needed calculations
and give the correct corresponding transition commands (Example: R1 <— R1 + .5 R2). Detail
is needed for credit. Work until you reach the row echelon format and back solve.
To get you started:
Show original system of 3 equations here.
1st transition (Show complete new system.) work for 1st transition and transition
command (as in the example shown
2nd transition work for 2nd transition
(Show the remaining steps too.)
Back solving work and answers here
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.