EXERCISE 1 :

You borrow an amount of $ 15,000. Your creditor charges you an interest rate

nominal annual 8% capitalized monthly. The loan will be repaid in 8 installments

equal annuals. In order to have enough money at the end of each year, you decide to save

every two weeks a sum in an account earning an annual interest rate of 7.5%

capitalized quarterly.

at. Calculate the annual loan repayment amount.

b. Calculate the minimum amount of bi-weekly deposits required to accumulate the

sufficient amount to ensure the annual repayment of this loan.