MATA32H3 Quiz: MATA32H3 Quiz 5 2010 Winter Solution

• School: UTSC
• Department: Mathematics
• Course: MATA32H3
• Professor: All

Document Summary

Key: find the amount (future value) of an annuity consisting of payments of at the end of every six months for 4 years, at the rate of 8% compounded semiannually. 1382. 134 (the book would call this 150 s8 0 amount of the annuity is . 13. Continued on reverse: a person amortizes a loan of ,000 for a new home by obtaining a 20-year mort- gage at the rate of 8% compounded quarterly. As indicated in the picture above, since we are dividing 20 years into quarterly pay periods, we will pay 80 installments all together. 02 = (1. 02) 1 + (1. 02) 2 + (1. 02) 3 + + (1. 02) 80. It follows that each quarterly payment is x . 5032. 14 dollars. (b) determine the total interest charges. The person pays 80 installments of . 14 each, i. e. a total of 80 .