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Unformatted text preview: an annual eective rate of interest 4.5%. Q6. A loan of $30,000 is repaid by 32 monthly payments of $1,000 in arrears plus a nal smaller payment. Using a interest rate of 6% compounded monthly determine the nal payment. Q7. A debt of $20,000 will be paid o by the monthly payments of $1,000 at the end of each month at a nominal interest rate of 7.2% per year, compounded monthly. Find the number of level payments needed and the amount of the nal smaller payment if it is made one month after the last level payment. Q8. Thierry plans to accumulate a fund for a retirement by depositing $3,000 at the be-ginning of each year for 25 years. Starting at the 26th year he can make 15 level withdrawals at the beginning of each year so as to deplete the fund. Assuming that all payments are level, nd the amount of the annual withdrawal, if the eective rate of interest is 8% during the rst 25 years but only 7% thereafter. 1...
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- Winter '09