Business Mathematics I Homework 6 Solutions for Math 115a, Assignments of Mathematics

Download Business Mathematics I Homework 6 Solutions for Math 115a and more Assignments Mathematics in PDF only on Docsity! Business Mathematics I Homework 6 for Math 115a, Section: Instructor: Steve Foster Due Date: Monday, April 6th by Team: We, the undersigned, affirm that each of us participated fully and equally in the completion of this assignment and that the work contained herein is original. Furthermore, we acknowledge that sanctions will be imposed jointly if any part of this work is found to violate the Student Code of Conduct, the Code of Academic Integrity, or the policies and procedures established for this course. ______________________________ ______________________________ Name (printed) Signature ______________________________ ______________________________ Name (printed) Signature ______________________________ ______________________________ Name (printed) Signature ______________________________ ______________________________ Name (printed) Signature ______________________________ ______________________________ Name (printed) Signature 1. (i) What is the value of $160,000 after 5-1/2 years at 3.75%, compounded quarterly. (ii) What is the effective annual yield? Solution: 2. What rate, r, compounded quarterly, will yield 6.1%? Solution: 3. (i) Find the value of $1,250,000 after 12 years and 6 months, if it is invested at a rate of 6.7%, compounded continuously. (ii) What is the yield on this investment? Solution: 4. How long, to the nearest whole month, will it take $40,000 to grow to $65,000 if interest is earned at a rate of 5.6%, compounded monthly? Solution: 5. What is the present value, rounded to whole dollars, of a $250,000 payment 6 years from now, if money earns at an annual rate of 6.15%, compounded quarterly? Solution: 6. Let X be a finite random variable with the following p.m.f., Xf . x 1 2 3 4 )(xf X 0.1 0.3 0.4 0.2 Use Excel to plot a bar graph of Xf . Solution.