KING FAHD UNIVERSITY OF PETROLUEM AND
MINERALS

Department of Mathematical Sciences

Math 131- Term 032

Quez#2(a)

Name: ID#: Sec#: Sr#:

Q1:
Find the Dual of the following:

Minimize_{}, subject to

_{}

Q2:
Find the effective rate of interest that equivalent to a nominal rate of 5.5%
compounded quarterly

Q3:
A debt of $600 due in five years is to be repaid by a payment of $200 now and a
second payment at the end of six years. How should the second
payment be if the interest rate is 6% compounded quarterly?