A Raymond borrows $45,000 today, but he expects to repay it in 15 years with semi-annual payments each year. After negotiating with his banker, Raymond can secure interest at 9% compounded monthly. (10 marks)

• 1. Raymond wants to know what the size is the periodic payment? 5
  2. Raymond expects to have higher salary after 5.5 years. He wants to know what the outstanding principal is at that time?