Luke borrows $8000,000 from a bank to set up a medical practice. He agrees to pay a fixed interset rate of 10.2% per a
equal monthly (end of month) installments over ten years.
(i) Calculate the monthly repayment. Answer is 10661.
(ii) By how much does Lu
What would an investor be prepared to pay for an asset that returns $80 per
annum for 6 years, given that the investor requires an annual interest rate of 4.5%
PV = D x PVIFA(n,i) = 80 x PVIFA(6,.045)
D = $80