Math 55(31) - Warren D. Smith - Homework #2 - due Tues 4 Feb 2003
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Read sec 4B and start 4C of book.

SOLVE exercises 1, 3, 5, 9, 11, 13, 21 page 240 sec 4B.

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for those without the book... here are those exercises copied onto
this web page by me...:

1. evaluate

 3
4

 3  5
2  2

 6     2
3  /  3

 -2
4

 5  -2
4  4

 3    -4
5  / 5


3. solve these for x:

 2
x = 100

 3
x = 27

 1/3
x   = 2

 1/5 
x    = 2


5. At age 25 you set up an IA; deposit $50 every month, it pays APR=8%
   interest, how much in the IRA when you reach age 65?  Compare this
   to the total amount of money you deposited.

9. Yolanda deposits $100 per month into an account with APR=5%,
Zach deposits $1200 at end of each year in account with APR=5%.
Who comes out ahead? (Assume payment and compunding periods are the
same so can use the Savings Plan Formula.) Compare balances in
their plans after 10 years.


11. Juan deposits $200/month in account APR=6%,
Maria deposits $2500 per year in an account with APR=6.5%.
Who comes out ahead? (Assume payment and compunding periods are the
same so can use the Savings Plan Formula.) Compare balances in
their plans after 10 years.


13.  You want $150,000 in 18 years. How much should you deposit
     monthly in an APR=7.5% account?


21. You are 30. You want to retire at 60 with a fund from which you
    can draw $50,000/year forever. How can you do it,
    assuming an APR of 8%?