Differential Equations in Finance
Description: This quiz is designed to assess your understanding of differential equations in finance. It covers concepts such as continuous compounding, annuities, and loans. | |
Number of Questions: 14 | |
Created by: Aliensbrain Bot | |
Tags: differential equations finance continuous compounding annuities loans |
What is the differential equation that describes the growth of a continuously compounded investment?
What is the solution to the differential equation $$\frac{dy}{dt} = ry$$?
What is the present value of an annuity that pays $1000 per year for 10 years at an annual interest rate of 5%? (Assume continuous compounding.)
What is the monthly payment on a loan of $100,000 that is to be repaid over 30 years at an annual interest rate of 4%? (Assume continuous compounding.)
What is the effective annual interest rate on a loan that has a nominal annual interest rate of 12% and is compounded monthly?
What is the doubling time of an investment that is continuously compounded at an annual interest rate of 7%? (Assume that the initial investment is $1.)
What is the future value of an investment of $1000 that is continuously compounded at an annual interest rate of 5% for 10 years?
What is the present value of an investment that will be worth $1000 in 10 years if the annual interest rate is 5% and the interest is compounded continuously?
What is the annual interest rate on a loan that has a monthly payment of $1000, a loan term of 30 years, and a total amount borrowed of $100,000?
What is the total amount of interest paid on a loan of $100,000 that is repaid over 30 years at an annual interest rate of 5%? (Assume continuous compounding.)
What is the present value of an annuity that pays $1000 per year for 10 years at an annual interest rate of 4%? (Assume continuous compounding.)
What is the future value of an annuity that pays $1000 per year for 10 years at an annual interest rate of 6%? (Assume continuous compounding.)
What is the present value of a perpetuity that pays $1000 per year at an annual interest rate of 5%? (Assume continuous compounding.)
What is the future value of a perpetuity that pays $1000 per year at an annual interest rate of 4%? (Assume continuous compounding.)