Daily Grade # 6(over sections F.2 - F.4)1
MATH 166 Spring 2009 - Dr. Oksana Shatalov
NAME
SECTION#
Row#
Due Thursday 4/2 at the beginning of YOUR class.
• If turned in later than 10 minutes into class, 5 points off. No papers will be accepted
after class.
• You MUST show ALL your work to get full credit. Just writing the answers down is not
enough. Even if you use your calculator, write down the preliminary work.
Show all you work and BOX YOUR FINAL ANSWERS.
1. [1pt] Find the amount needed to deposit into an account today that will yield a payment
of $35, 000 at the end of each year for the next 24 years with annual rate 8%.
N
I%
PV
PMT
FV
P/Y
C/Y
=
=
=
=
=
=
=
2. [5pt]A $115, 000 mortgage is amortized over 30 years at an annual interest rate of 3.2%
compounded monthly.
(a) What are the monthly payments?
N
=
I% =
PV =
PMT =
FV =
P/Y =
C/Y =
(b) How much interest is paid in all?
1
This worksheet is the same as page 8 from corresponding Lecture Notes
1
Suppose instead that the mortgage was amortized over 15 years at the same annual
interest rate.
(c) What are the new monthly payments?
N
=
I% =
PV =
PMT =
FV =
P/Y =
C/Y =
(d) Now how much interest is paid in all?
(e) How much is saved by amortizing over 15 years rather than 30?
[4pt] Find the amortization table for a $23, 000 loan amortized in five annual payments
if the interest rate is 5.3% per year compounded annually.
End of
Outstanding
Payment made
Interest
Payment toward
year
Principle
charged
principle
0
1
2
3
4
5
Show how to find ”Payment made” in this table:
N
=
I% =
PV =
PMT =
FV =
P/Y =
C/Y =
2