ANSWERS ONLY

(THANKS)

1.A 25-year mortgage is amortized by making payments of $2052.61 at the end of every three months. If interest is 8.45% compounded annually, what was the original mortgage balance?

2.Stephan bought a car priced at $29 700.00 for 10% down and equal monthly payments for 4.5 years. If interest is 8.22% compounded semi-annually, what is the size of the monthly payment?

3.Calculate the future value and the present value of monthly payments of $300.00 each for five years at 12% compounded monthly if

a) the payments form an annuity due;

b) the payments form an ordinary annuity.

4.The local area soccer club need to borrow to finance a new soccer field. Repayment of the loan involves payments of $20 000.00 at the end of every three months for eight years. No payments are to be made during the development period of five years. Interest is 8% compounded quarterly.

a) How much did the Achievers borrow?

b) What amount will be repaid?

c) How much of that amount will be interest?

5.A retirement gratuity of $178900.00 is invested in annuity deferred for 10 years. The annuity provides payments of $8600.00 due at the beginning of every six months. If interest is 7.41% compounded annually, for how long will annuity payments be made?