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2) If you wanted to earn $450 at the end of every quarter in interest from a savings account, how much would you need to
2) If you wanted to earn $450 at the end of every quarter in interest from a savings account, how much would you need to place in the account at the end of each quarter if the interest rate is 3.42% compounded monthly? How would it affect the answer if you wanted the payments to start today? 3) Consider a $325,000 mortgage that is to be repaid over 25 years with monthly payments at 3.12% compounded monthly. Show the first year of the amortization schedule if payments are done at the end of the month. 4) A large gas and oil company needs to raise $2,000,000 for capital expansion of its plant. The company issues bonds ten year bonds to raise the money. The bonds are redeemable at 103, that is, for every $1 of face value, $1.03 will be paid upon redemption. The rate of interest on the bond is 4.5% payable semi-annually. If at the time of the bond issue interest rates are 4.2% compounded quarterly. what amount of money will the company receive from the bond issue
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