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Please show work for all questions if possible 1) You have borrowed $130,000 to buy a new motor home. Your loan is to be repaid

Please show work for all questions if possible

1) You have borrowed $130,000 to buy a new motor home. Your loan is to be repaid over 15 years at 8% compounded monthly. Calculate the total amount of interest you will pay over the life of the loan.

a $ 47,451
b $ 93,677
c $126,226
d $299,090

2) You have borrowed $130,000 to buy a new motor home. Your loan is to be repaid over 15 years at 8% compounded monthly How much total interest will you save over the life of the loan by paying an extra $200 per month loan?

a $24,247
b $41,872
c $69,418
d $81,763

3) You are considering an investment that will pay you $100 in Year 1, $500 in Year 2, $0 in Year 3 and $600 in Year 4. If you require a 12% return, what is the most you should pay for this investment today? (Round to nearest $)

a $915
b $869
c $734
d $698

4) The term maturity risk emphasizes the fact that

a repayment is less assured as maturity lengthens
b shorter term bonds are worth more than longer term bonds
c bond prices change when interest rates change
d the prices of longer term bonds change more than the prices of shorter term bonds when interest rates change

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