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Guys please help me out!! Thank you! Question A1 Marty has been offered an injury settlement of $10,000 payable in three years. What is the
Guys please help me out!! Thank you!
Question A1 Marty has been offered an injury settlement of $10,000 payable in three years. What is the present value of injury settlement is if the interest rate is 5%? (a) (5 marks) (b) Finance company loans money at 20% interest pa. What is the effective monthly interest rate? (5 marks) (c) A man stipulates in his will that $50,000 from his estate is to be placed in a fund from which his three daughters are each to receive the same amount when aged 21. When the man dies the girls are aged 19, 15 and 13. How much will each receive. If the fund earns interest at 12% compounded half yearly (8 marks) (d) John is repaying a debt with payments of $250 a month. If he misses his payments for July, August, September and October, what payment will be required in November to put him back on schedule, if interest is at 14.4% compounded monthly? (7 marks) TOTAL: 20 MARKS Question A2 (a) Mrs Wong changes employers at age 46. She's given RM8500 as her vested benefits in the company's pension plans. She invests this money in a registered retirement savings plan paying 8% annual interest, and leaves it there untl her ultimate retirement at age 60. She plans 25 annual withdrawals from this fund, the first on her 61st birthday. Find the size of these withdrawals. (8 marks) (b) A parcel of land valued at S35,000 is sold for a down payment of $15,000 The buyer agrees to pay the balance with interest rate of 12% compounded monthly by paying $500 per month, as long as necessary. The first payment is due 2 years from now. Find the number of paym borrowed amount and also the value of the final payment? ents needed to settle the (7 marks) (c) The Andersons borrow $15,000 to buy a car. The loan will be repaid over three years, with monthly payments at 6% interest compounded monthly Find the total interest paid in 12 months of the second year (15 marks)Step by Step Solution
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