What initial donation is required ma170 final

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MA170 Final Examination Fall 2009 9. A $20 000 debt is to be amortized with quarterly payments of $2 000. Interest is at j 4 = 8 . 8%. [ 6 marks ] Complete the first two lines of the amortization schedule below. Line Payment Balance 0 20000.00 1 2 10. On January 15, 2008, Terry took out a loan for $15 000 to start a business. The loan was at [ 8 marks ] j 12 = 7%. Terry made monthly payments of $400.00 starting on February 15, 2008. Determine the total amount that Terry paid in interest during 2008. 11. To raise the $1 500 000 it needs to repave its streets, the City of Waterloo plans to issue [ 10 marks ] 10-year bonds, effective May 1, 2010, at j 2 = 6.9%. To redeem the bonds in 2020, it will establish a sinking fund at j 2 = 5%. Calculate (a) the semi-annual expense of the debt (b) the book value of the city’s indebtedness on May 1, 2016, immediately after all payments are complete. 12. You have just purchased a 10-year municipal bond with face amount $10 000, redeemable at [ 10 marks ] 105, with semi-annual coupons at 6.9%.
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