1) Selma makes 36 monthly deposits of $200 starting from the end of year 1, in a savings account at a Bank which pays 24% compounded monthly. Three years after making the last deposit, the interest rate changes to 16% compounded quarterly. If the accumulated money is withdrawn from the bank at the end of year 10, how much is withdrawn? Assume that payments made within the compounding period receives partial interest. Answer: $62,158.015 2) Beth wants to buy a bar called Puzzle that will cost $80,000. She will make a down payment of $10,000 and take out a mortgage on the rest of the money at 9% compounded monthly. a. What will be her monthly payments to pay off the mortgage in 20 years? b. Beth has made 28 monthly payments and wants to figure out the remaining balance immediately after the 28th payment. What is that balance? Answer: a) $630 b) $66,768.30 Serkan wants to sell a bond that has a face value of $1,000. The bond has a coupon rate of 6% payable semiannually. Five years ago, he paid S880 for the bond. Serkan requires at least a 8% return (yield) on this investment, what must be Answer: $942.47 3) the minimum selling price? A Company has two bond issues outstanding. Both bonds pay $100 semiannual interest, plus $1,000 at maturity. Bond A has a remaining maturity of 15 years, bond B a maturity of 1 year. What is the value of eachof these bonds today, when the market interest rate of the bonds is 9%? Answer: 4) Bond A: $1895.89 Bond B: $1103