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1. A 350,000 home loan is amortized by equal monthly payments for 30 years, starting one month from the time of the loan at a

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1. A 350,000 home loan is amortized by equal monthly payments for 30 years, starting one month from the time of the loan at a nominal rate of 6% convertible monthly. What is the total interest paid during the last ten years of the loan? 2. You are given an annuity immediate paying 15 annually for twenty years. After the twenty years, the payments decrease by 1 per year until it reaches a payment of 1. The payments of 1 continue forever. The annual effective rate of interest is 5%. Calculate the present value of this annuity 3. You purchase a home for 200,000. Mortgage payments are to be made for 30 years with the first payment to be made one month from the loan origination. The annual effective rate of interest is 8%. Starting with the 100th payment, 400 is added to each payment in order to repay the mortgage earlier. What would be the amount of the last payment? 4. Jeff deposits 15into a fund today and 20 fifteen years later. Interest is credited at a nominal discount rate of d compounded quarterly for the first 10 years, and at a nominal interest rate of% compounded semiannually thereafter. The accumulated balance in the fund at the end of 30 years is 130. Find d 5. 1000 is deposited into Fund A, which earns an annual effective rate of 5%. At the end of each year, the interest earned plus an additional 100 is withdrawn from the fund. At the end of the tenth year the fund is depleted. The annual withdrawals of interest and principal are deposited into fund B which earns an annual effective rate of 8%. Determine the accumulated value of fund B at the end of year 10

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