1. Howard bought a $ 10,000.00 GIC bearing interest at 7% c.a due principal and interest in 10 years. He sold the GIC after 50 months to an investor who expects to earn 5% c.s.a . How much did the investor pay Howard for the GIC?

2. Harley bought a Honda for $24,000.00 She paid $4,000.00 down and $450.00 monthly thereafter. Use the U.S rule (declining balance method) to determine the balance owing just after the third payment and the part of the third payment that goes to principal. The N.R =4% c.m.

3.Heathcliff owes $10,000.00 bearing interest at 6% c.m. for 5 years. Six months before the due date, the debt is commmuted into a payment of $X due in 1/2 years and a payment of $7000.00 due in 1 year. The interest rate is set at 8 % c.q. Determine of $X