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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 & 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 & 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...
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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 .
- Fall '08