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25-27 all 25. Bank A offers you a loan which you will repay over 5 -ycars at j12=6% with monthly payments of $1500. Bank B
25-27 all
25. Bank A offers you a loan which you will repay over 5 -ycars at j12=6% with monthly payments of $1500. Bank B offers you the same loan amount, but at j4=6%, which you will repay over 5 -years with quarterly payments of $R. What is the maximum value of R for you to even consider Bank B ? (A) $4525.88 (B) $4522.54 (C) $4519.19 (D) $4500.00 26. A deposit of $10,000 is made today. Semi-annual withdrawals of $R are made for 15years, with the first withdrawal made 6 -months from today. The fund earns interest at j2=10% for the first 6 -years and h2=6% thereafter. What is R ? (A) $618.93 (B) $442.15 (C) $540.26 (D) $605.26 27. Which of the following relationships is/are true? (1) sn!l=an!i(1+i)n+1 (II) [snil+sn!i(1+i)n](1+i)2n=a2n!i (A) Both are true (B) (D) only (C) (ii) only. (D) Neither is true Step by Step Solution
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