ENGIN 120 Final: e120-sp2001-final-Liao-soln
Document Summary
Solutions to e120 spring 2001 final exam by wen-yu liao r = rate for a 5-yr period = (1. 037137)^5-1 = 0. 2. Assuming payments are made at the end of the month: r = monthly rate = (1+3%/4)^(1/3) -1= 0. 00249 (or (1+r)^3 =1+3%/4 ) Balance right after 24th payment = 138[1-1/1. 00249^(180-24)]/0. 00249 = 17,821. 32. Interest paid in the 25th payment = 17,821. 32*0. 00249 = 44. 38. By the end of 10th year, 120 payments have been made. Principal paid during the first ten years = 20000-7682. 31 =12,317. 69. = total payments made for the first 10 years- total principal paid during the first 10 years. Total interest paid for the loan = 180*138 -20,000 = 4,840. Total interest paid for the last 5 years = 60*128 - 138[1-1/1. 00249^(180-120)]/0. 00249. Interest paid for the first 10 years = 4,840-597. 69 =4,242. 31. Dividend yield = d1 / p0 = 10. 8/p0 = 0. 05; p0 = 216 g = (10. 8/10)-1=0. 08. P0 = 216 = 10. 8/(r-0. 08); r = 0. 13.
