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(MATH005)quiz2_math005_by_PPSpider.pdf
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Tutorial: Math 005 Name: Duration: quiz02 ID Number:
1. Youopena bank accounton1January withDdollarsandmake additionaldepositsofP on1October, 1November,and1December.Interestis6%ayearcompoundedmonthly.Ifyouhaveno otherdeposits or withdrawals, then the amount inyour account next1 January is:
(a)
D(1.005)12 +P(1.005)9 +P(1.005)6 +P(1.005)3

(b)
D(1.015)4 +P(1.015)3 +P(1.015)2 +P(1.015)1

(c)
(1.005)12 {D+P +P(1.005).3 +P(1.005).6}

(d)
D(1.005)12 + P(1.005)1 +P(1.005)2 +P(1.005)3

(e)
D(1.015)4 +P(1.015)2 +P(1.015)1 +P


2. If g is a function, and g(x y)= g(x)+g(y)for all numbersx and y, and g(9) = 4, then g(3) equals:
(a) -1 (b)0 (c)2 (d)4 (e)1
3. Youborrow $10,000 now at 18% interest rate compounded annually. If the loan is repaid in .veyears with.veequalannualpaymentspayableatthebeginningofeachyear, startingnow,theannualpayment to the nearest cent is :
(a) $2,867.92 (b) $2,939.59 (c) $3,054.79 (d) $2,709.98 (e) $2,632.84
4. Youborrow $10,000 now at 12% interest rate, compounded annually for .veyears. If the loan is repaid inthreeequalannualpaymentspayableattheendsofyears3,4,5,theannualpaymenttothe nearest cent is :
(a) $5,352.15 (b) $5,222.68 (c)5,849.40 (d) $5,792.25 (e) $5,681.09
5. Suppose we have an annuity due with$ 1000 tobe paid at the beginning of each month for5years at the annual interest rate 12% compounded monthly. Find the present value of the annuity due :
(a) $45,404.59 (b) $ 44,955.04 (c) $ 81,669.67 (d) $82,486.37 (e) $ 93,426.78
6. Tostudyhowhumanslearn,ascientistrepeatedlygoesthrougha maze. Thetime requiredtoexitthe
9
maze on the nth trial is givenby f(n)=4+ minutes. On which trial did the scientist .rst exit the
n
maze in6 minutes or less?
(a) 4th trial (b) 5th trial (c) 6th trial
(d) 7th trial (e) None of the previous
7. If f(x)= g(x +5) and g(x)= x2 +2x +1, compute f(1).
(a) 16 (b) 25 (c) 36 (d) 49 (e) 64
8. Candy has decided to pay o. two loans on which she has not made any previous repayment. The .rst loan is a loan in which she obtained $8,000 one year ago at a rate of 5% compounded quarterly. The second is a loan where $12,000isdueintwoyearata rateof7% compounded monthly.Tothe nearest dollar, how much is due now?
(a) $18,844 (b) $18,881 (c) $21,410 (d) $18,049 (e) $22,205
9. Acar rental companyestimates thata new saloon car that costs$185,000 willhavea salvagevalueof $ 75,000 afteritbeingin servicefor fouryears. Wewantto setupa sinking fund with eachpayment paid at the end of each month to replace the used car at the end of the service period. Suppose the interest rate is 5.2%, and that the interest of the sinking fund is compounded monthly, the company will pay a monthly payment of:
(a) $2,060.00 (b) $550.21 (c) $ 2,076.53 (d) $ 2,019.83 (e) $2,066.53
Answers: 1.d 2.c 3.d 4.b 5.a 6.b 7.d 8.a 9.e