Mathematics Of Personal Finance Sem 1 Apex Answers

MAP4C. Annuities and Mortgages Assignment. Name_____________ Date________

Answers Part 1. Questions 1-27. Problem Solving Personal Finance.

Answer all questions. Use additional paper as required and attach them to this report. You may have to complete some of this work on your own time, using computers, and/or the internet. 1.

How many months in each time period? [2 marks]

Years Months 5 years 60 10 years 120 20 years 240 25 year 300 30 years 360

2. How many weeks are in each time period? [2 marks]

Number of Weeks 2 years 104 5 years 260 20 years 1040 30 years 1560

3. Depositing $100 per month means depositing how much in each time period? [2 marks]

Amount ($) 5 years 6000 10 years 12000 20 years 24000 25 year 30000 30 years 36000

MAP4C. Annuities and Mortgages Assignment. Name_____________ Date________ 4. Earning $40 000 in one year means earning an average of how much in each time period? [3 marks]

Time Period Amount ($) Note: This column header shows

"$"symbol, so the

numbers below do not need to show

the "$" symbol.

Calculations a month 3333.33 40000/12=3333.333333333333 one week 769.23 40000/52=769.2307692307692 one day 109.59 40000/365=109.5890410958904 six and a half months 21666.65 3333.33*6.5 = 21666.645 three months 10000.00 Three months = .25 year. $40000/4 = $10000

5. How many payments are made in one year for each payment frequency? [3 marks]

Frequency Number of payments per year. Monthly 12 quarterly 4 semi- annually 2 Weekly 52 bi-weekly 26 semi- monthly 24

6. State whether or not the year shown is a leap year. [3 marks]

MAP4C. Annuities and Mortgages Assignment. Name_____________ Date________ a) Year 2012? Explain how we know. Yes, the year 2012 was a leap year since 2012/4 = 503, which is a whole number; and year 2012 is not a multiple of 400. b) Year 2013? Explain how we know. No, the year 2013 is not a leap year. [2013/4 = 503.25, which is not a whole number.] c) The year that will you turn age 65 is______. Is it a leap year? How do you know? Answers may vary. 7. Calculate the value of the following exponential expressions: [3 marks] a) 1000(1+0.0325)

= 1032.50 b) 1000(1.0325)

= 6814.023385 c) 1000(1.0325)

-60

= 146.75617 8. a) State the compound interest formula in terms of A, P, i, and n. A=P(1+i)

b) Rewrite the compound interest formula A=P(1+i)

in terms of FV, PV, i, and n. FV=PV(1+i)

[2 marks]