Question
1) Even a loan that is repaid with 15 annual payments at the end of each year. The first 5 installments are 4000 each, the
1) Even a loan that is repaid with 15 annual payments at the end of each year. The first 5 installments are 4000 each, the next 5 are 3000 each, and the final 5 installments (remaining) 2000 each. Find an expression for the unspent capital immediately after the second installment of 3000 , in two ways:
i) prospectively
ii) retrospectively
2) A 35 year loan is repaid in equal installments at the end of each year. The amount of interest paid in the eighth installment is 135, while the amount of interest paid in the 22nd installment is 108. Calculate the amount of interest paid in the 29th installment.
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