1. Shara Hondana wants to own a brand new car. Honda is selling Civic car for 2 million. The required downpayment is 25% of the selling price. Chinabank presented to finance the car at 12% annual interest. Shara Hondana desires to pay the loan on a quarterly basis good for 3 years only.

Questions:

1. How much is the quarterly payment of the loan for three years?
2. How much is the outstanding balance of the loan after paying for one year?

2. Manula Mat is a financial planner who works at CokoLayff has offered two possible options for receiving cash flows:

1. 10 000 now and another 10 000 at the beginning of each 11 subsequent months during the remainder of the year at 12% nominal interest annually but discounted monthly.
2. 127,500 at the end of the year (assume 12% nominal interest rate discounted semiannually

3. Selena Gomez and Justine Bieber plan to get married 5 years later after they work abroad. They talked about to save jointly after they have saved from work abroad. In the first year, Selena will deposit 25 000 and 2^nd year Selena will deposit 30 000 3^rd year and 4^th year each will contribute 50 000 and in the 5^th year their generous boss will give

50 000. Assuming all deposits are made at the beginning of the year with an interest of 7% annual interest. How much is their total funds for their wedding?

4. Teacher Kizel deposited 90 000 as a debut gift for her daughter. Katrina will celebrate her debut two years from now. The interest rate is 12% compounded every 4 months. What is the total value of the gift to be received by Katrina when she reaches the age of 18?

5. You are now 19 years old and would want to have 1 million in your 40^th birthday. You intend to attain this goal by making 10 annual deposits to earn 15% annual interest and subsequently roll over whatever amount you would have in your 29^th birthday until your 40^th year. How much be your annual deposit for the next 10 until you have 1 million in your 40^th birthday.