BU111 Spring 2012 - Supplementary Questions

# If 1000000 of damages is awarded and the nominal

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: where they are paid in monthly installments by the defendant. If \$1,000,000 of damages is awarded, and the nominal interest rate is 4%, what is the amount of the monthly payment if spaced over 3 years? Assume that payments are made at the beginning of every month. Problem 15 The lottery Cash For Life offers a grand prize of \$1,000 a week per life. If you win the lottery at the age of 25, and put all your winnings into a savings account earning 5% interest annually, how much money will you have in your account in ten years’ time? Payment are received at the end of every week. Problem 16 Construction company Hammer &amp; Nails Inc. finances the purchase of their equipment through loans with their bank. Recently, they bought a bulldozer and entered into a new loan agreement. Interest is set at 3.25%. Hammer &amp; Nails is to make monthly payments of \$2,000 at the end of every month for the next four years. What was the price of the bulldozer? Problem 17 You currently have \$12,000 in yo...
View Full Document

## This note was uploaded on 02/07/2014 for the course BU 111 taught by Professor Jessicastockie during the Fall '08 term at Wilfred Laurier University .

Ask a homework question - tutors are online