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each of the following questions. 1. Mr. and Mrs. Norman purchased a ski chalet for $36 000. They paid $4000 down and agreed to make

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each of the following questions. 1. Mr. and Mrs. Norman purchased a ski chalet for $36 000. They paid $4000 down and agreed to make equal payments at the end of every 3 months for 15 years. Interest is 8% compounded quarterly. (a) What size of payment are the Normans making every 3 months? (b) For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance? (c) For the second payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance? (d) How much will they have paid in total after 15 years? (e) How much interest will they pay in total? Reference Example 14.10 E. A contractor's price for a new building was $96 000. Slade Inc., the buyers of the building, paid $12 000 down and financed the balance by making equal payments at the end of every 6 months for 12 years. Interest is 7.3% compounded semi- annually. (a) What is the size of the semi-annual payment? (b) For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance? (c) For the second payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance? (d) What is the total cost of the building for Slade Inc.? (e) What is the total interest included in the payments? Leo's Auto Repairs Inc. borrowed $5500 to be repaid by end-of-month payments over four years. Interest on the loan is 9% compounded monthly. (a) What is the size of the periodic payment? (b) What is the outstanding principal after the 13th payment? (c) What is the interest paid in the 14th payment? (d) How much principal is repaid in the 14th payment? Reference Example 14.1G To start their business, Ming and Ling borrowed $24 000 to be repaid by semi-annual payments over 12 years. Interest on the loan is 7% compounded semi-annually. (a) What is the size of the periodic payment? (b) What is the outstanding principal after the seventh pavment? (c) What is the interest paid in the eighth payment? (d) How much principal is repaid in the eighth payment

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