A 1 year Canadian T-Bill with face value $1000 has an interest rate of 4% A 1 year U.S. T-Bill with face value $1000 has a discount rate of 5%. What is the difference in their present values (ignoring currency differences)? (a) $12.85 (b) $16.62 (c) $1.56 (d) $11.54 (e) $2.83 EXAMPLE 3.1 (Amortization table) A loan of amount 1000 at a nominal annual interest rate of 12% com- pounded monthly is repaid by 6 monthly payments, starting one month after the loan is made. The first three payments are amount X each and the final three payments are amount 2X each. Construct the amortization schedule for this loan. SOLUTION To solve for X we have 1000 = Xazon +2Xv'azon as the equation of value