5. A loan of K5,000 is to be paid off in four equal payments at the...

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5. A loan of K5,000 is to be paid off in four equal payments at the end of each quarter. Assuming an interest rate of 20%, calculate (a) the amount of each payment, (b) the present value of the loan, (c) the total amount of interest paid, (d) the amount of interest paid each quarter. 5 marks 5 marks 5 marks 5 marks 6. Starting on her 35th birthday, a woman saves K200 at the end of each month with a view to retiring on her 50th birthday. (a) What is the value of her savings if the interest rate is 8% per annum? 5 marks (b) From the age of 50, how much should she withdraw each month if the fund is to last for the next 15 years, assuming the interest rate is 9% per annum? 5 marks 5. A loan of K5,000 is to be paid off in four equal payments at the end of each quarter. Assuming an interest rate of 20%, calculate (a) the amount of each payment, (b) the present value of the loan, (c) the total amount of interest paid, (d) the amount of interest paid each quarter. 5 marks 5 marks 5 marks 5 marks 6. Starting on her 35th birthday, a woman saves K200 at the end of each month with a view to retiring on her 50th birthday. (a) What is the value of her savings if the interest rate is 8% per annum? 5 marks (b) From the age of 50, how much should she withdraw each month if the fund is to last for the next 15 years, assuming the interest rate is 9% per annum? 5 marks

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For question 5 a To calculate the amount of each payment we can use the formula for the equal paymen... View the full answer