FACPYA FINANCIAL MATHEMATICS

LABORATORY MIDTERM EXAM

Nombre:Grecia Hadith Chávez Lagunes Date: March 7th

2022
INSTRUCTIONS: Print on both sides or on recycled paper and answer the
exercises.

I.- Answer the questionnaire.

1.- What is the fundamental objective of financial mathematics?

The study and analysis of all those operations and proposals in which money is involved and the
time.

2.- What is the definition of interest?

It is what is paid or received for a certain amount of money borrowed or lent.

3.- What is a financial operation?

It is the investment of a sum of money through the application of interest

4.- What is the definition of simple interest?

It is the interest that is generated on a capital that remains constant over a period of time.

5.- What is the term or time?

It is the number of days or other units of time that elapse between the start and end date in a
financial operation.

6.- What is the Amount?

Total amount of money that will be there after a period of time.

7.- What is capital?

It is the initial amount of money.

8.- What is the interest rate?

It is the ratio between interest and capital.

9.- When is it said that the interest is simple commercial?

When time is taken as follows: 360 days a year, 180 days a semester, 90 days a quarter,
30 days in a month.

10.- When is it said that the interest is exact simple?

When time is taken in the following way: 365 days a year and a table or calculator is used for the
other equivalences

11.- What is the definition of compound interest?

It is the financial operation in which the capital increases at the end of each period by the addition of the interest.
defeated.
12.- What is the capitalization period?
The agreed period to convert interest into capital.

13.- What is understood by monthly capitalization?

This means that the interest generated is capitalized each month; that is, the interest is added at the end of each
months.

14.- What is the nominal interest rate?

It is the annual interest rate applicable to an investment or a loan with compound interest.

15.- What is the effective interest rate?

It is the interest rate that is effectively applied in each capitalization period.

16.- ¿Cómo es el crecimiento de los intereses en el interés simple?

It is constant (the same interest rates in each period).

II.- Answer the exercises, include data, formula, substitution of data, procedure and
result.
1.- On what date was the loan of $7,200, with a nominal value of $8,100 and due date made?
March 5, 2020, with an interest rate of 26.3%?
Data Operations Time conversion
-1
M=8,100 = 0 years 0.475285 (12)=5.70342 months
8100
-1
i=0.263 = 7,200 5 months 0.70342 (30) = 21.10 days
0.263
C=7,200 =0.475285... years 5 months and 21 days

FINAL DATE 5 MARZO 2020

5 MONTHS
5 OCTUBRE 2019
-21 DAYS
INITIAL DATE 14 DE SEPT. 2019
Response: the loan was made on September 14, 2019

2.- A person buys a room on May 9, with a cash value of $25,550. They make a down payment.
30% and it is advisable to pay the rest in three equal payments at 30, 60, and 90 days. How much should each be?
one of the three payments, if the interest rate is 25.8% per year?
Data Operations
C=25,550 = 1+i2 +1+i2 + 1+i
E=30% =7,665 17,885 = 1 + 2 + 3
1+0.258 12 1+0.258 12 1+0.258 12

i=0.258 17,885 = 1.0215 + 1.043

+ 1.0645
17,885=0.97895252x+0.95877277x+0.939408172x
17,885 = 2.877133463x
17,885/2.877133463=x
x=6,216.25
Respuesta:cada pago debe ser de $6,216.25
3.- How long does it take for an investment to double at an annual rate of 21.8%?
Data Operations Time conversion
-1
M/C=2 = 0.587155963(12) = 7.04587156 months
2-1
i=0.218 = 0.2184.587155963 0.04587156 (30) = 1.3761 days
The response is: it will double in 4 years, 7 months, and one day.
4.- A person deposits $20,000 in an account that pays 19.8% annual interest. After three months
Withdraw $8,500. How much does he have in his account two months after the withdrawal?
Data Operations
C=20,000 BALANCE FOR 3 MONTHS WITHDRAWAL
i=0.198 = (1+ ) 20,000-8,500=11,500
t=3 months=0.25 years = 20,000 1+(0.198(0.25) )
=20,990
NEW BALANCE IN TWO MONTHS SUM M+I
C=12,490 = (1+ ) 11,879.5+990=12,869.5
t=2 months=2/12 years = 11,500(1+ 0.198(122))
i=0.198 =11,879.5
Respuesta:el saldo final es de $12,869.5

5.- A property acquired three years ago is worth $1,205,000.00 today, if the appreciation rate is 28%
simple annual over the last three years, what was the price of the property at that time?
Data Operations
M=1,205,000 = 1+i
1,205,000
i=0.28 = 1+0.28(3)
t=3 years =654,891.3043
Answer: the initial value of the property was $654,891.3043

On January 6, the Northeast Construction Company, S.A. buys materials for construction of
an apartment building subscribing to two documents with a nominal value of $135,000 and $82,000 and
whose maturity is respectively on March 19 and May 12, the interest of which is
23%. Take commercial year to determine:
a) El precio de los materiales b) El cargo por concepto de interés January 6
Data Operations February 6 +30
1 2 March 6 +30 +13
i=0.23 1= 1+i 2= 1+i
April 6 +30
135,000 82,000
M1=135,000 1= 1+0.23(73/360) 2= 1+0.23(126/360) May 6 +30 +6
M2=82,000 1=128,984.3149 2= 75,890.7913
t1=73
t2=126 INTERESTS
I=(M1+M2)-(C1+C2)
I=217,000-204,875.1062
I=12,124.8938
Respuesta:a) el precio de los materiales es de $204,875.1062
b) $12,124.8938 is paid in interest
On June 2, 2019, Mr. González purchases merchandise for $32,500 and signs a promissory note for the amount.
nominal of $37,250 and maturity on August 21 of the following year. What is the annual interest rate?
capitalizable by days?

8.- What compound annual rate over weeks triples a capital in 3 years?
Data Operations

M/C=3 = √ −1 NOMINAL RATE

156
t=3 years=156 weeks = √ 3− 1 0.007067242 (52)=0.36749
=1.007067242-1
=0. 007067242
Response: the nominal rate is 36.74%

9.- Find the date on which a document with a nominal value of $4,550 expires. This is signed by a
Loan of $4,125 on June 1, 2020, with an interest rate of 21.6% per year, compounded daily.
Data Operations
( ) June 1
M=4,550 = Ln (1+i ) 1 July +30
4550
(4125 ) August 1 +30
C=4,125 = Ln (1+0.0006 )
September 1 +30
i=0.216 =163.484381 1 Oct +30
November 1 +30 +13
ie=0.0006

Respuesta:el documento se vence el 14 de noviembre

10.- A television is purchased with a down payment of $3,500, and it is paid off with $10,000 after 2 months. What is the
cash price if it has charges of 33% compounded monthly.
Data Operations
E=3,500 = ( 1+i SUM TOTAL HOOK + CAPITAL
)
10,000
M=10,000 = ( 1+0.0275 Cash price=9,471.88+3,500
)2
10,000
t=2 months = 1.05575625 Cash price=12,971.88
n=2 C=9,471.88
i=0.33
ie=0.0275
Respuesta:el precio de contado es de $12,971.88

11.- How long does it take for a capital to grow by 70% if it is invested at 36.4% compounded weekly? Express the
response in years, months, and days.
Data Operations Time conversion
( )
M/C=1.7 = Ln (1+i 1 year = 52 weeks
)
L₁.7( )
i=0.364 = Ln (1+0.007 There are 24 weeks left = 5.53846153 months
)
ie=0.007 n=76.0690415 0.53846153(30)=16.1538
Answer: in 1 year, 5 months, and 16 days
12.- How much should be invested on October 3 in an account that pays 54% nominal daily interest, to
have $20,000 on December 21, if on November 5 and 30 deposits are made respectively
$ 5,000 y $3,750? ¿Cuánto se genera de intereses? Tomar tiempo real.
Data Operations
i=0.54 = ( 1+i )
= ( 1+i )
= ( 1+i )
5,000 3,750 20,000
ie=0.0015 = ( 1+0.0015 ) 33
= ( 1+0.0015 ) 58
= ( 1+0.0015 ) 79
=4,758.70229 =3,437.7632 = 17,766.6137
TIME
M1 (3 OCT-5 NOV) M2 (3 OCT-30 NOV) M3 (3 OCT - 21 DEC)
31 OCT +28 31 OCT +28 31 OCT +28
30 NOV +5 31 NOV +30 30 NOV +30
33 DAYS 58 DAYS December 31 +21

79 DAYS

Equalizing credits and charges Value equation

Fertilizers Withdrawals 8,196.46549+x=17,766.6137
X 17,766.6137 x=17,766.6137 -8,196.46549
4,758.70229 x=9,570.14821
3,437.7632
8,196.46549+x 17,766.6137

INTERESTS
C=9,570.14821+5,000+3,750=18,320.148
I=M-C=20,000-18,320.148= 1,679.852
Respuesta:debe invertirse $9,570.14821y los intereses son de $1,679.852