Question: Please show work! A) A bank is offering 12% compounded quarterly. If you put $100 in an account, how much will you have at the

Please show work!

A) A bank is offering 12% compounded quarterly. If you put $100 in an account, how much will you have at the end of one year? Whats the EAR?

B) Using pure discount. A borrower can afford to re-pay $25,000 in 5 years. We want to earn 12% per year. How much would we loan him?

C) Using balloon payment. What is the loan payment of a fully amortizing loan of $5,000 at 9% for 5 years?

D) A real estate investor borrowed $500,000 for a development project at 7%. The payments are calculated using a 20 year amortization. A balloon payment of the entire balance is due in 5 years. What is the monthly payment? What is the balloon payment in year 5?

F) Which of the following interest rates would result in the most accurate answer:

Annual Percentage Rate (APR), Nominal Rate, Stated Rate, or Effective Annual Rate.

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