1. A debt of $5000 with interest at 9% compounded annually is to be repaid by equal payments at the end of each year for six years. Calculate the cost of financing.

$5000

$1687.59

$5344.15

$352.28

2. For a debt of $5000 amortized by making equal payments at the end of every 3 months for 2 years and interest 8% compounded quarterly, amortization schedule is $........ per quarter.

3. Analyze the case study: Angelo Lemay borrowed $8000 from his credit union. He agreed to repay the loan by making equal monthly payments for five years. Interest is 9% compounded quarterly. Determine the nature of annuity involved.

Ordinary general annuity

Simple annuity

General annuity

Ordinary simple annuity

4. Find the cost of financing in the following case scenario: A debt of $30000 with interest at 9.75% compounded quarterly is to be repaid by equal payments at the end of each year for seven years. What is the equivalent periodic rate of interest?

None

43294.79

13294.79

30000