Question 1. Say you borrow $60,000 at 15 percent compounded Semi-Annually and agree to make equal...
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Question 1. Say you borrow $60,000 at 15 percent compounded Semi-Annually and agree to make equal bi-annual end-of-year payments over 5 years. To find the size of the payments, the lender determines the amount of a 5-year annuity discounted at 15 percent compounded Semi-Annually that has a present value of $60,000. If you wish to pay out the whole balance amount after 5 years of the time period, who is getting more benefit and why? Question 2. Trust needs Rs1,000,000 per month expenditure for bearing the operational cost. How much it needs to have in the endowment fund looking at the current Monetary Policy? Question 1. Say you borrow $60,000 at 15 percent compounded Semi-Annually and agree to make equal bi-annual end-of-year payments over 5 years. To find the size of the payments, the lender determines the amount of a 5-year annuity discounted at 15 percent compounded Semi-Annually that has a present value of $60,000. If you wish to pay out the whole balance amount after 5 years of the time period, who is getting more benefit and why? Question 2. Trust needs Rs1,000,000 per month expenditure for bearing the operational cost. How much it needs to have in the endowment fund looking at the current Monetary Policy?
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