Math 2UU3 * TEST4

Test Prep > Math 2UU3 * TEST4

McMaster University MATH 2UU3 This test has 8 pages. Calculators allowed: Casio fx991MS or fx991MS PLUS, or similar (i.e., two lines of display and no graphing capabilities). If some piece of information is missing, you must decide on its value. The last page contains CPI values, and some formulas that you might need. 1. Circle ONE answer, or fill in the blank. No jus ...[Show More]

McMaster University
MATH 2UU3
This test has 8 pages. Calculators allowed: Casio fx991MS or fx991MS PLUS,
or similar (i.e., two lines of display and no graphing capabilities). If some piece
of information is missing, you must decide on its value.
The last page contains CPI values, and some formulas that you might need.
1. Circle ONE answer, or fill in the blank. No justification is needed.
(a)[2] Which one of these quantities has a positive correlation with the total interest paid
on a mortgage? Total interest is the sum of all interest payments throughout the life of a
mortgage.
(A) Amount of down payment
(B) Payment frequency (number of payments per year)
(C) Amortization period
(D) Amount of a yearly prepayment (also called lump sum)
(b)[2] The annual percentage rate (APR) for cash advances related to certain financial
products from TD Bank is 22.99%. The corresponding effective annual rate (EAR, in %)
when interest is compounded monthly, is
Round off to two decimal places, so that you answer has the same format as the given APR.
Continued on next page
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MATH 2UU3 * Test 4 * 27 November 2018 Name:
Student No.:
Questions (c)-(e) on this page refer to the diagram representing the Lorenz curve for a
population of some country.
0 1
1
0.2
0.2
(c)[2] What quantity is represented on the vertical axis?
(A) Total population of the country
(B) Cumulative percent of the population, arranged from the poorest to the wealthiest
(C) Cumulative percent of the total wealth (income) of the country
(D) The Gini index (coefficient) for the given country
(d)[2] Given the Lorenz curve for some population, the Gini coefficient (the Gini index) is
computed by multiplying
b