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1) A real estate investor feels that the cash flow from a property will enable his to pay a lender Rs. 15,000 per year, at
1) A real estate investor feels that the cash flow from a property will enable his to pay a lender Rs. 15,000 per year, at the end of every year, for 10 years. How much should the lender be willing to loan her if he requires a 9% annual interest rate by general formula (annually discounting, assuming the first of the 10 equal payments arrives one year from the date the loan is disbursed)? 2) Now that you are finished school, you also have to start paying back your student loans. You borrowed a total of Rs. 12,500. You plan to pay back the loan over 10 years at an interest rate of 9.4% interest, compounded monthly. How much will your monthly payments be? 3) Your company estimates it will have to replace a piece of equipment at a cost of $800,000 in 5 years. To do this a sinking fund is established by making equal monthly payments into an account paying 6.6% compounded monthly. How much should each payment be
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