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5. You are given a loan on which interest is charged over a 5-year period as follows. (i.) The force of interest 8 (t) =
5. You are given a loan on which interest is charged over a 5-year period as follows. (i.) The force of interest 8 (t) = 3t2/ (1++) for year 1; (ii.) The force of interest 8 (t) = 2t/ (1+t) for year 2; (ii.) A nominal rate of interest of 15% convertible monthly for year 3; (iv.) A nominal rate of interest of 15% convertible once every 3 years for year 4; (v.) A force of interest of 15% in year 5. (a) Calculate the equivalent nominal interest rate convertible quarterly for the 5-year period. (b) Calculate the equivalent nominal interest rate convertible quarterly for the first 2 years. (c) Calculate the equivalent nominal interest rate convertible quarterly for years 3 through 5
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