Financial Math

3. (16 pt) A loan of$50,000 with nominal interest rate of 6%, compounded semiannually, is to be repaid by semiannual payments of $5,000 starting at the end of the third year and to continue thereafter for as long as necessary. Find the amount of the final payment if it is to be a (1)balloon payment (2) drop payment. i, /163%: Sooo Cl le - 24993 4. (16 pt) Consider an annuity-immediate with guarterly payments for ten years. In the first year the four payments are each $200. In subsequent years the payments are level in the course of each year, which increase by 1% over what they were in the previous year. Find the present value of this annuity if the annual nominate interest rate is 8% compounded quarterly. 2 1.102 3. (16 pt) A loan of$50,000 with nominal interest rate of 6%, compounded semiannually, is to be repaid by semiannual payments of $5,000 starting at the end of the third year and to continue thereafter for as long as necessary. Find the amount of the final payment if it is to be a (1)balloon payment (2) drop payment. i, /163%: Sooo Cl le - 24993 4. (16 pt) Consider an annuity-immediate with guarterly payments for ten years. In the first year the four payments are each $200. In subsequent years the payments are level in the course of each year, which increase by 1% over what they were in the previous year. Find the present value of this annuity if the annual nominate interest rate is 8% compounded quarterly. 2 1.102