An investment will pay $$150$ at the end of each of the next $3$ years, $$300$ at d$.$ Construct an amortization schedule for a $$10,000$ car loan for $10\%$ annual

rate loan to be repaid in $4$ years.

Note: Ensure to list all headings. No points will be awarded for merely

listing answers. No exceptions. You are required to show all work.

a$.$ What is the total amount of payments made during the life of the loan?

b$.$ What is the total interest paid during the life of the loan?

d$.$ Why is the total payment different from the loan amount?

e$.$ Based on your knowledge of the amortization schedule, what advise can you give a potential home buyer?

e$.$ A bond trader purchased each of the following bonds at a yield to

maturity of $8\%.$ Immediately after she purchased the bonds, interest

rates fell to $7\%.$ What is the price of each bond after the decline in

interest rates? Fill in the following table. List the calculator keys and

entries. Hint: #$1$ is done as an example

the end of Year $4,$ $$600$ at the end of Year $5,$ and $$700$ at the end of Year $6.$

If other investments of equal risk earn $10\%$ annually, what is its present

value?

a$.$ Solve using cash flow keys. List the keys and entries

b$.$ Solve using a Timeline. List all the keys and entries.

c$.$ An investment promises the following cash flow stream: $$1,000$ at Time $0$ ;

$$2,000$ at the end of Year $1($or at T$=1)$; $$3,000$ at the end of Year $2$; and

$$5,000$ at the end of Year $3.$ At a discount rate of $10\%,$ what is the future

value of the cash flow stream? Solve using Timelines. List all the keys

and entries