1. Part A

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. Calculate the equivalent periodic rate of interest, p.

1.09

1.029142466571506

None

0.029142466571506

2. Part B

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. What is the total amount of the amortized loan?

$9026.2

None

$17026.2

$8000

3. PART A

A $50,000, five-year bond redeemable at par and bearing interest at 5% payable semi-annually is purchased at a market price of $50,000 one year and 6 months before maturity. Determine the maturity period of the bond.

Four years and six months

Five years

None

One year and 6 months