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Q. No. 4 1) A person borrows $100,000 to be repaid in 8 years with 10% annually compounded interest. The loan may be repaid at

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Q. No. 4 1) A person borrows $100,000 to be repaid in 8 years with 10% annually compounded interest. The loan may be repaid at the end of any cartier year with no prepayment penalty a What amount will be due if the loan is repaid at the end of year 1? B. What amount is due at the end of the eighth year? 2) An Iowa state savings bond can be converted to $10,000 at maturity 10 years from purchase. If the state bonds are to be competitive with US savings bonds, which pay 8% annual interest (compounded annually). at what price must the state sell its bonds today? Assume no cash payments on savings bonds prior to redemption 3) Joan Messineo borrowed $100.000 at a 15% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual end-of-year payments. a Calculate the annual end-of-year loan payment b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time

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