1. Force of interest 0.05 100 exp Eﬀective rate of return 0.05 100 (1.05) 2 = 102.47 2. The value is 6 6
1

1 × 0.05 2

= 102.53

exp
0.5

δ (s) ds

= exp
0.5

(0.01s + 0.04) ds
t=6

=

exp

0.01

t2 + 0.04t 2

= 1.49.
t=0.5

3. 150 in 3 years accumulates to
3

150 exp
0

0.05 + 0.02s2 ds

= 150 exp

0.02

t3 + 0.05t 3

t=3

= 208.65
t=0

200 in 5 years accumulates to
3 5

200 exp
0

0.05 + 0.02s2 ds +
3 t=3

0.05 + 0.01s2 ds t3 + 0.05t 3
t=5

=

200 exp

0.02

t3 + 0.05t 3

exp
t=0

0.01

= 426.23
t=3

250 in 8 years accumulates to
3 8

250 exp
0

0.05 + 0.02s2 ds +
3 t=3

0.05 + 0.01s2 ds t3 0.01 + 0.05t 3
t=8

=

250 exp

t3 0.02 + 0.05t 3

exp
t=0

= 2248.73
t=3

To ﬁnd the eﬀective rate earned we have to solve 600 = 208.65 (1 + i) −3

+ 426.23 (1 + i)

−5

+ 2248.73 (1 + i)

−8

Trying various values such as i = 0.1 and i = 0.2, we have LHS¡RHS. With i = 0.25, RHS=620 and with i = 0.26, RHS=596, so it is between 0.25 and 0.26 and closer to 0.26. Further investigation shows it is 0.258, i.e. 25.8% 4. Same exercise

1

5. We start with the present value
6 s 2 s

ρ (s) exp −
0 5 0

δ (u) du ds =
1 s

12 exp −
0 6

δ (u) du ds +
s

(10 + s) exp −
2 0 2

δ (u) du ds +
5 s

15 exp −
0

δ (u) du ds =

12 exp −
1 5 2 0

0.08 du ds +
s

(10 + s) exp −
2 6 2 0

0.08 du −
2 5

du 10 + u
s

ds +

15 exp −
5 2 0

0.08 du −
2 5

du − 10 + u

0.06 du ds =
5

12 exp (−0.08s) ds +
1 6 2

(10 + s) exp (−0.08 × 2) exp − ln 15 12
5

10 + s 12

ds +

15 exp (−0.08 × 2) exp − ln
5

exp (−0.06 (s − 5)) ds = 12 ds + 10 + s

12

exp (−0.08) − exp (−0.16) + 0.08
6

(10 + s) exp (−0.16)
2

12 exp (−0.16) exp (−0.06 (s − 5)) ds =
5

1 − exp (−0.06) exp (−0.08) − exp (−0.16) +12 (5 − 2) exp (−0.16)+12 exp (−0.16) = 51.25 0.08 0.06 The accumulated value is 12 2 5

51.25 exp
0

0.08 du +
2

du + 10 + u
10

6

0.06 du
5

= 51.25 exp (0.16)

15 exp (0.06) = 79.83 12

6. 1000

(1.0381)
t=1 10

t−1

(1.09)
−t

−t

=

1000 1.0381 1000 1.0381
10

t=1

1.09 1.0381

=

(1.05)
t=1

−t

=

1000 at 0.05 1000 a = 7.72173 = 7438.33. 1.0381 10| 1.0381

...evidence gathering, void of professional judgment. From the point of view of both the profession and the users of auditing services, there is probably a greater harm from defining authoritative guidelines too specifically than too broadly.
2-16 a. (1) b. (2) c. (3) d. (3)
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First, info flow diagrams and flowcharts argon the two most much utilize development and musical accompaniment tools employ today. Second, since systems developme nt is super complex, DFDs and flowcharts ar! e tools that are used to fix order from sanatorium and complexity.Â (Ch 3, p. 50)| | | Â | Points Received:| 4 of 5| Â | Comments:| First, data flow diagrams and flowcharts are the two most...

...
Lodging Demands
DeVry University
Foundations of Hotel Mgmt
HOSP-320-62422
ProfessorLionel Thomas Jr.
November 02, 2014
Lodging Demands
Chapter 1:
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Population growth (Population Demographics, per textbook): The growth of population is an important factor that affects the lodging demand directly, Survey data of business and pleasure travel...

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Because they channel funds from those who do not have a productive use for them to those who do, thereby resulting in higher economic efficiency.
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Businesses would cut investment spending because the cost of financing this spending is now higher, and consumers would be less likely to...

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Week1HomeworkSolutions
Part 1: Complete the following problems.
1. What is machine code? Why is it preferable to write programs in a high level language such as C++?
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References
Historical Gas Prices, Retrieved on March 9,2012 from , Retrieved from www.atlantagasprices.com/GasPriceSearch.aspx
Markets Are Efficient, Chapter 1, Core Economics, Gerald W. Stone, 2008
Coffee Buffs from Amazon to Rio Poise Brazil to Top U.S., Retrieved on March 14, 2012, Retrieved from...

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ACCT550
Chapter 1
CA1-3 (Financial Reporting and Accounting Standards)
1. GAAP stands for:
(a) governmental auditing and accounting practices.
(b) generally accepted attest principles.
(c) government audit and attest policies.
(d) generally accepted accounting principles.
2. Accounting standard-setters use the following process in establishing accounting standards:
(a) Research, exposure...