Score: 8.5, Chapter 3 Row Name 50} ~-k~. A <?c PDF Free Download

Math 70 - Test #2A - Spring 09 Score: 8.5, Chapter 3 Row Name 50} ~-k~. A <?c.. 80 Where appropriate, and whether or not you are using the MATH SOLVER, you must Name the formula List the values that are inserted into each ofthe formula's variables Box the variable that you solved for Place your labeled answer in the box to the right. Monetary values should be rounded to the nearest penny. Other decimal answers should be rounded to four significant digits to the right of the decimal point. If you are not using the MATH SOLVER, you may use scratch paper to do your calculations. Q1: Expected Value: A card is drawn from a standard 52-card deck. If the card is an Ace, you win $10; otherwise, you lose $1. Set up the payoff table and find the expected value of the game. /0 ~I Pi Q2: What is the annual percentage yield for money invested at A. 9.3% compounded semiannually?. 0 q S I (P B. 9% compounded continuously? q c.; I :; C. Which is the better investment? It tty" 9,3'2 tmpj ~~~. A. Formula fl pq.,. Ans: () 1{):J...: 9 5'2?o B. Formula: t! I-t f 't Ans:. D1 ~~ "'" 9. 42-~ Q3: At what annually compounded rate must money be invested, if it is to double in 5 years? t:.i 1."00 A ::= ~ 20C ~ ~ ek...e ::: I I ()O _ lode> ): '" R. ~~.-=-' ~~ /11-':5 0. nt-..fv.,-c-c-. q,+ 4 &> ~ q. :rs- ~ \~ Formula t!.-,=-,-i Ans: _ J Q4: Rental costs for office space have been going up at 4.8% per year compounded annually for the past 5 years. If office space is now $35 per square foot, what were the rental rates 5 years ago? A -= 3 S' L~p_-::_o?_r_.\_/ _=1 I :::.() tf8 N -.;1 5 Formula (l_( Ans: l' ;{ 1'.

Page 2A of 3 Q5: If $2,000 is deposited each quarter into an ordinary annuity paying 8% compounded quarterly, -"') ~ar+er-~ ~ A. Complete the balance sheet for the first three quarters. vo.07. period deposit interest balance 1 2,000.00 0.00 2,000.00 2 ~/O/)O 3 J. ~() '0 I 0 l. (Zt:JDO ) Jfo J.t 0 "'0. 00 ) 2. (<;, () 4~) ~,/7..() go 'o. ~ B. When will the account have a value of $100,000? [F;;: /0, "ool ;v':: 35 t) 03 Formula FV' Ans:,'Is ~a.-t.-~ 8 ::"s ~. Q: The Hartford offered an annuity that pays 4.8% compounded monthly. What equal monthly deposit should be made into this annuity in order to have $50,000 in 10 years? Formula F V F -.::: S-tJ, (;" 0 I Ans: :'.3 ~ s: t-j " ts =.3~5. '-I~3 J.:c ~ N ::',5 =.2.00 0 I =. '$'/ <4 "::!- 0"2.04gIJ'l- /O -J2:::: I'"UJ Q7: A stock trading company charges a commission of $20 + 1% ofthe principal for both the purchase and sale of stocks. An investor purchases 200 shares at $21.50 a share, holds the shares for 2 weeks, and then sells the 53 stock for $25.00 a share. Find the annual rate of interest earned with this investment. J:) ~ l cj.oo (2 I.SO) + (:ld t Ci J (43 tjo) ) 5.1.' -, Formula: ~3(/o + t,3 ~.3 (p -3 Ans:.2 Co C7Zo 10 tloo (:ls) - (~{) A =-1/0:!>D SOD 0 =ro pr;; J../3bJ ---- ~9.3o [R:=,.25'1'1' ] I -::.S"

Page 3A of 3 Q8: A retiree has an annuity that pays 5.% compounded quarterly with a current balance of $30/000. He wants to make equal quarterly withdrawals so that at the end of 5 years the account balance is $0. A. What is the value of each withdrawal? r------------, B. How much interest was earned during the first year? Formula P \(' fl. p V =- 3D,DDO [f= lt30 iij R ==. () ~/'-f ==.01 'l B. 0--~ 'r f\j=j c, lvvtd PV -=- Jt.1, to tf~ /3. l!aj.vl. 1; & ~ kjqa~b-tr 2:;0,000 - ;l</fe,</(?/~ A. Ans: $ )T 3D.;lO B. Ans: $ I b b f. 9 3 ::; :fi'53 SI S'=! I ~'30. za )( Lj = &; q,;",o.'[jo r3vd:: k~ ~ 9 ~o. &0 - " 3 s;j, f'-7 :'.~+~~ I!5"7P 8. q.?> Q9: A family has a $150/000/20 - year mortgage at % compounded monthly. A. Complete the amortization table for the first two payments. Period Payment interest 05' (WI1pd. baa) reduction on prnt-lm~ wn1'c:l baq recl.tu.. 0 0 0 0 150/000 1 1074.5 2 1074.5 J5,,/{)PO (,f)o~) /D14. {p5 - =7-{;)[j JS-O, ()oo - 32-'/." r f.-5tj 3!J.1. lp5" /L/9 I q, rs. Sf> 1 qq, ~ ~S 3S'(.()tJn J b 'Y-'f. (,5 - -=l</f'. :'0 jqq,(''l-s.?><f:- '32l,.H '1-t/R. 3D 3.:2-(,. ~ '::j ILfq 3'FJ.tJf i B. After 5 full years of payments, what is the of the mortgage? C. How much interest is paid during the 20 years? IS. [p V::: I 'J. 1;?J Lfq. 2> q8' ] ~. h/a.q. ~= s L N.=:; )1-4. (, ~ ~.oos- ;:: c2l/o-5{f~) :::/8"lJ ~ #p~~ Lef':. =10 H bs:( ()jfo) -=$(;l5~/9j& f/yi~h to-/aj2pl - tt>o,ootj ::: /1-, If 1& Formula: P_V B. Ans: $/.:lt,3'1q. Lj() C. Ans: $/IJ 1-, q I {P

Math 70 - Test #2B - Spring 09 Score: 8.5, Chapter 3 Row Name 50 i u.. --h ~ E ~ b 80 Where appropriate, and whether or not you are using the MATH SOLVER, you must Name the formula List the values that are inserted into each of the formula's variables Box the variable that you solved for Place your labeled answer in the box to the right. Monetary values should be rounded to the nearest penny. Other decimal answers should be rounded to four significant digits to the right of the decimal point. If you are not using the MATH SOLVER, you may use scratch paper to do your calculations. Q1: Expected Value: A card is drawn from a standard 52-card deck. Ifthe card is an heart, you win $5; otherwise, you lose $1. Set up the payoff table and find the expected value of the game to you. Xi.5" -J I?> I 3'1 3 Pi - - ~ =~ 52 -.,. 5:1. I_E(X)_= l'._=>o_i J Q2: What is the annual percentage yield for money invested at A. 8% compounded continuously? B. 8.1% compounded semiannually? C. Which is the better investment? 8 l:7 o Crm p. cer.,+. AP'1 { =.D8Z.lo 4 J L~ ::. os 32 8' ] R. ::::.0 9 J P. ~,0' M-:::-7... Q3: At what annually compounded rate must money be invested, if it is to double in years? A ::: Z. ~ or z..oo 2000 or OR e+c. p::) rr ItJD 1000 J A. Formula C 11 P'1 Ans: () S' 33 -=- 8.3~'" B. Formula: A P ~ Ans:.0 8 2. I.JJ ::: 8.:J.~ % Formula (!. I Ans:.., "' 1% Q4: Rental costs for office space have been going up at 3.8% per year compounded annually for the past 5 years. If office space is now $25 per square foot, what were the rental rates 5 years ago? r-p.=-~.;. -!J f<. ~.f) 38 T?S I Formula ex_ Ans: $c::2o.o_~_

Page 28 of 3 Q5: A stock trading company charges a commission of $20 + 1% ofthe principal for both the purchase and sale of stocks. An investor purchases 200 shares at $18.50 a share, holds the shares for 2 weeks, and then sells the stock for $22.00 a share. Find the annual rate of interest earned with this investment. d. DO CI fj. S-0) of t-o}7lrn i S sin"!. 3 "1-00 I- (2. 0 +.41 ('3.:}- (0) :; 99-s-q.. Formula: _S_J c2qo ( :2:2.) - (!Arr~~ IT ~ 433(P _ Ans: 3 0 82:= 30, 8 az a.:lo C + 01 (4'-100)) ~J.ftJD -. P :=' 3:}- s-:r 1/ 3 3{P [~.:: B0 8 ~ ] 1 ~. b Q: If $4,000 is deposited each quarter into an ordinary annuity paying 8% compounded quarte~ly, A. Complete the balance sheet for the first three quarters..::';l.;z G1D f~ ~a,..r+e-r period deposit interest balance 1 4,000.00 0.00 4,000.00 Formula FV 2 #.POlJ, 3 1,00 (),0 ~ (tf(jlj()) ~O C>"). ( 'do 80) 1(P1. (p~ 8'iO~ OD /.!Ji t1jjj. {PO B. When will the account have a value of $100,OOO? F =.5 ::::.I= Jrf;= If) oj ~e;d, ().08/4 ::::.02 I ~--- ------ ~ Q1: The Hartford offered an annuity that pays 5.5% compounded semiannually. What equal semi-annual deposit should be made into this annuity in order to have $80,000 in 10 years? F V :::: fd,rrt;v Formula FV [ 5 = 305"3.~ 'P Ans:..E 05,3. 9-'1 1 -:;.. 055/~ =>.o~ 75 tl ~ m tryi+/.. to N ::::- /D *'';<' :::- 8-D $'.:( 01". iff?

Page 3B of 3 Q8: A retiree has an annuity that pays 5.2% compounded quarterly with a current balance of $30,000. He wants to make equal quarterly withdrawals so that at the end of 5 years the account balance is $0. A. What is the value of each withdrawal? B. How much interest was earned during the first year? Formula -'PC-...LV _ 30 I OoD PV= \ s-= R ::: 1=i-/"3 J2 J. () 5 ;;J. /4 -= CJ I '3 A. Ans: $. 1-:;-/3. ;;J... B. Ans: ~ /'-I5S. q 2. tlm&.. py:; Q1 1 ~ (3CJ,fTO O - ~f)3.t.jt.j t;t4-, bd3. '-1-4) = 53~t.e.50. Q9: A family has a '$200,0,20 - year mortgage at % compounded monthly. A. Complete the amortization table for the first two payments. Period Payment interest OD t' )PJ btj reduction on pmt ~ mfe.+-e.st /.\.npj bal - rcjuaj,j... 0 0 0 0 200,000 1 1432.8 /tjt;" L/3.2.~ /11,!Jb9. J 2 1432.8 q q;;.. 811 '/35. 02.. /q9,/32./z B. After 5 full years of payments, what is the unpaid Qalance of the mortgage? C. C. How much interest is paid during the 20 years? e. J P ;: /fpfj, 119. ")..0 ] S = ;432. ~b2. Formula: PV f; B. Ans: It. 1"?-'1Cf :J-o T.:::.005 /'I =: ~1tJ -5(1'4 =J~f~t.s ~t (..; /J' fj ~ - 200" (){)l) _-- ~ I 7 L13 2. cg' / * ';}"I{) -,:; (') 0, tj(j () Cp ;::.3 L/3/~~,'-Io - z..oo,tjolj - JJ.j 3 1 off b. '11)

Math 70 - Test #2A Spring 09 Score: 8.5, Chapter 3 Row Name 80 Where appropriate, and whether or not you are using the MATH SOLVER, you must Name the formula List the values that are inserted into each of the formula's variables Box the variable that you solved for Place your labeled answer in the box to the right. Monetary values should be rounded to the nearest penny. Other decimal answers should be rounded to three significant digits to the right of the decimal. If you are not using the MATH SOLVER, you may use scratch paper to do your calculations. Q1: Expected Value: A card is drawn from a standard 52-card deck. If the card is an Ace, you win $10; otherwise, you lose $1. Set up the payoff table and find the expected value of the game. x i p i E(X) = Q2: What is the annual percentage yield for money invested at A. 9.3% compounded semiannually? B. 9% compounded continuously? C. Which is the better investment? A. Ans: B. Formula: Ans: 8 Q3: At what annually compounded rate must money be invested, if it is to double in 5 years? Ans: Q4: Rental costs for office space have been going up at 4.8% per year compounded annually for the past 5 years. If office space is now $35 per square foot, what were the rental rates 5 years ago? Ans:

Page 2A of 3 Q5: If $2,000 is deposited each quarter into an ordinary annuity paying 8% compounded quarterly, A. Complete the balance sheet for the first three quarters. period deposit interest balance 1 2,000.00 0.00 2,000.00 2 3 B. When will the account have a value of $100,000? Formula Ans: 12 Q: The Hartford offered an annuity that pays 4.8% compounded monthly. What equal monthly deposit should be made into this annuity in order to have $50,000 in 10 years? Ans: Q7: A stock trading company charges a commission of $20 + 1% of the principal for both the purchase and sale of stocks. An investor purchases 200 shares at $21.50 a share, holds the shares for 2 weeks, and then sells the stock for $25.00 a share. Find the annual rate of interest earned with this investment. Formula: Ans: 10

Page 3A of 3 Q8: A retiree has an annuity that pays 5.% compounded quarterly with a current balance of $30,000. He wants to make equal quarterly withdrawals so that at the end of 5 years the account balance is $0. A. What is the value of each withdrawal? B. How much interest was earned during the first year? A. Ans: 10 B. Ans: Q9: A family has a $150,000, 20 year mortgage at % compounded monthly. A. Complete the amortization table for the first two payments. Period Payment interest reduction on 1 0 0 0 0 150,000 1 1074.5 2 1074.5 B. After 5 full years of payments, what is the of the mortgage? C. How much interest is paid during the 20 years? Formula: B. Ans: C. Ans:

Math 70 - Test #2B Spring 09 Score: 8.5, Chapter 3 Row Name 80 Where appropriate, and whether or not you are using the MATH SOLVER, you must Name the formula List the values that are inserted into each of the formula's variables Box the variable that you solved for Place your labeled answer in the box to the right. Monetary values should be rounded to the nearest penny. Other decimal answers should be rounded to three significant digits to the right of the decimal. If you are not using the MATH SOLVER, you may use scratch paper to do your calculations. Q1: Expected Value: A card is drawn from a standard 52-card deck. If the card is an heart, you win $5; otherwise, you lose $1. Set up the payoff table and find the expected value of the game to you. x i p i E(X) = Q2: What is the annual percentage yield for money invested at A. 8% compounded continuously? B. 8.1% compounded semiannually? C. Which is the better investment? A. Ans: B. Formula: Ans: 8 Q3: At what annually compounded rate must money be invested, if it is to double in years? Ans: Q4: Rental costs for office space have been going up at 3.8% per year compounded annually for the past 5 years. If office space is now $25 per square foot, what were the rental rates 5 years ago? Ans:

Page 2B of 3 Q5: A stock trading company charges a commission of $20 + 1% of the principal for both the purchase and sale of stocks. An investor purchases 200 shares at $18.50 a share, holds the shares for 2 weeks, and then sells the stock for $22.00 a share. Find the annual rate of interest earned with this investment. Formula: Ans: 10 Q: If $4,000 is deposited each quarter into an ordinary annuity paying 8% compounded quarterly, A. Complete the balance sheet for the first three quarters. period deposit interest balance 1 4,000.00 0.00 4,000.00 12 2 3 B. When will the account have a value of $100,000? Formula B. Ans: Q7: The Hartford offered an annuity that pays 5.5% compounded semiannually. What equal semi-annual deposit should be made into this annuity in order to have $80,000 in 10 years? Ans: