Unformatted text preview: eﬀective interest rate of 3.5% the present value at time 0 of all the payments is 1000. (a) Find X . (b) Using an annual eﬀective rate of 1%, calculate the present value at the beginning of the ninth year of all the remaining payments. 4. A large state borrows $300 million in a bond issue to pay for redwood forests. It will pay the money back in 20 equal installments at an annual interest rate of 7.5%. Find the total interest the state will pay. 5. If a 2  = 1 . 7, ±nd i . 1...
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 Spring '10
 Dr.K
 Math, annual effective rate, final balloon payment, Dennis X

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