1. A businessman buys a $100,000 piece of manufacturing equipment on the following terms: Interest will be charged at a rate of 4% compounded semiannually, but no payments will be made until 2 years after purchase. Starting at that time, equal semiannual payments will be made for 5 years. Determine the semiannual payment?
2. A retired person has set aside a fund of $105,003.50 for his retirement. This fund is in a bank account paying 2.4% interest compounded monthly. How much can he draw out of the account at the end of each month so that there is a balance of $30,000 at the end of 15 years? (First compute the present value of the $30,000.)
3. A business loan of $500,000 is to be paid off in monthly payments for 10 years with a $100,000 balloon payment at the end of the 10th year. The interest rate on the loan is 6% compounded monthly. Calculate the monthly payment?