9. 10. 11. The recurrence relation below expresses the amount owing on a reducing balance loan where interest is calculated monthly and T is the amount owing after the nth monthly repayment... Tn+1 1.01Tn 300, where To = 5500 = (a) Calculate T (b) How much money was borrowed? (c) How much are the monthly repayments? (d) What annual percentage interest rate is being charged? (e) How much will be owing after 1 year? (1) Hamid invests in a perpetuity with an interest rate of 2.3%p.a. compounding six-monthly and then donates the payment to a charity of his choice. How much did he invest if he donates $460 twice a year? Calculate the repayments required to fully repay $100 000 borrowed at 6% p.a. for 10 years with quarterly repayments and interest compounded quarterly (1) (0.5) (0.5) (1) (1) Stanley invests $500 into an account that earns 9% p.a. compounding monthly. At the start of each new month, he pays $100 into the account. (a) How much will Stanley have in the account by the end of 2 years? (b) How much interest will he have earned by the end of 2 years? (2) (2) (1)