9. Dave borrows 100,000 from Fran for 10 years. He makes payments to Fran at then end of each year equal to the sum of,

a constant payment toward the principal

interest on the outstanding balance at an effective annual rate of 4%

Gloria reinvests the interest payments at an annual effective rate of 5%. At the end of 10 years, the accumulated value of Glorias reinvested interest payments is X. Calculate x.

10. A ten-year annuity-immediate has monthly payments. The first payment is $500, and the monthly increase is $25. Calculate the present value of this annuity if the annual effective interest rate is i = 4.8 %.

11. George chooses to receive his retirement benefit over 25 years at the rate of $3,000 per month beginning one month from now. The monthly benefit increases by 5% each year. At a nominal interest rate of 6% convertible monthly, calculate the present value of the retirement benefit.

9. Dave borrows 100,000 from Fran for 10 years. He makes payments to Fran at then end of each year equal to the sum of, a constant payment toward the principal interest on the outstanding balance at an effective annual rate of 4% Gloria reinvests the interest payments at an annual effective rate of 5%. At the end of 10 years, the accumulated value of Gloria's reinvested interest payments is X. Calculate x. 10. A ten-year annuity-immediate has monthly payments. The first payment is $500, and the monthly increase is $25. Calculate the present value of this annuity if the annual effective interest rate is i = 4.8 %. 11. George chooses to receive his retirement benefit over 25 years at the rate of $3,000 per month beginning one month from now. The monthly benefit increases by 5% each year. At a nominal interest rate of 6% convertible monthly, calculate the present value of the retirement benefit