Instrument A is table 1, and Instrument B is table 2. Answers the questions based on these two tables

 

Instrument A

Instrument B

 

Transcribed Image Text:

A F Annual payments Accumulated payments Guaranteed total Annual Annual rate of Year (at the beginning) (at the beginning) payoff (at the end) payoff ($) return (%) $107,960 $107,960 $107,960 $107,960 $107,960 $107,960 $0 $53,667 $144,188 ($54,293) (S17,439) ($14,841) (S12,184) ($9,437) $160,474 -50.29% $107,960 $215,920 $323,880 $431,840 2. 1 3 -16.15% 4 3. $237,307 -13.75% $333,083 $431,606 $700,040 $718,941 $738,352 $758,288 $778,762 $799,788 5 4 -11.29% -8,74% $539,800 $647,760 6. 148.64% 8 $647,760 $18,901 2.70% $0 $O $647,760 $19,411 $19,936 $20,474 69 8 2.70% 2.70% $647,760 $647,760 $647,760 $647,760 $647,760 $647,760 10 11 10 $0 2.70% $21,026 $21,595 $22,186 12 11 $0 2.70% 13 12 $0 $821,383 2.70% 14 13 $0 $843,569 2.70% $866,336 $889,727 $913,750 $938,421 $963,758 $989, 780 $1,016,504 15 14 $22,767 2,70% $23,391 $647,760 $647,760 $647,760 16 15 SO 2.70% 17 16 $0 $24,023 2.70% $24,671 $25,337 $26,022 $26,724 18 17 $0 2,70% 19 18 $647,760 2.70% 20 19 $0 $647,760 2.70% 21 20 $0 $647,760 2.70% Hojal 88888888888888 1, A F Annual payments Accumulated payments Guaranteed total Annual Annual rate of Year (at the beginning) (at the beginning) payoff (at the end) payoff ($) return (%) $107,960 $107,960 $107,960 $107,960 $107,960 $107,960 $0 $53,667 $144,188 ($54,293) (S17,439) ($14,841) (S12,184) ($9,437) $160,474 -50.29% $107,960 $215,920 $323,880 $431,840 2. 1 3 -16.15% 4 3. $237,307 -13.75% $333,083 $431,606 $700,040 $718,941 $738,352 $758,288 $778,762 $799,788 5 4 -11.29% -8,74% $539,800 $647,760 6. 148.64% 8 $647,760 $18,901 2.70% $0 $O $647,760 $19,411 $19,936 $20,474 69 8 2.70% 2.70% $647,760 $647,760 $647,760 $647,760 $647,760 $647,760 10 11 10 $0 2.70% $21,026 $21,595 $22,186 12 11 $0 2.70% 13 12 $0 $821,383 2.70% 14 13 $0 $843,569 2.70% $866,336 $889,727 $913,750 $938,421 $963,758 $989, 780 $1,016,504 15 14 $22,767 2,70% $23,391 $647,760 $647,760 $647,760 16 15 SO 2.70% 17 16 $0 $24,023 2.70% $24,671 $25,337 $26,022 $26,724 18 17 $0 2,70% 19 18 $647,760 2.70% 20 19 $0 $647,760 2.70% 21 20 $0 $647,760 2.70% Hojal 88888888888888 1,

Answer rating: 100% (QA)

Here is the answer Since it involves massive calculation we resort to excel I will show you two snap... View the full answer