1. Supposer and s are interest rates, and interest is applied according to the following scheme: At 11:59pm on Monday we compound with an interest rate r, at 11:59pm on Thursday we compound with an interest rate s. This scheme is applied each week. Assume that weeks begin on Sunday. (i) It is the beginning of the week. You are saving to make a payment of S dollars after 3 weeks. Determine the amount of money that must invested today, using the above compounding scheme, to ensure that you can cover this payment. Write your answer in terms of S, r, and s. (ii) At the beginning of the week, you have taken out a loan of L dollars, amortized over the next 2 weeks. At the end of each week, you must make a payment of P dollars on your loan. Interest is applied according to the above interest scheme. What are your payments P? Write your answer in terms of Lir, and s. (ii) Now suppose you amortized the same loan of L dollars over 6 weeks, making payments of A dollars a the end of each week. What is the principal remaining on the loan at the beginning of the fifth week? Write your answer in terms of L, A, T, and s. 1. Supposer and s are interest rates, and interest is applied according to the following scheme: At 11:59pm on Monday we compound with an interest rate r, at 11:59pm on Thursday we compound with an interest rate s. This scheme is applied each week. Assume that weeks begin on Sunday. (i) It is the beginning of the week. You are saving to make a payment of S dollars after 3 weeks. Determine the amount of money that must invested today, using the above compounding scheme, to ensure that you can cover this payment. Write your answer in terms of S, r, and s. (ii) At the beginning of the week, you have taken out a loan of L dollars, amortized over the next 2 weeks. At the end of each week, you must make a payment of P dollars on your loan. Interest is applied according to the above interest scheme. What are your payments P? Write your answer in terms of Lir, and s. (ii) Now suppose you amortized the same loan of L dollars over 6 weeks, making payments of A dollars a the end of each week. What is the principal remaining on the loan at the beginning of the fifth week? Write your answer in terms of L, A, T, and s