QUESTION 4.[25 MARKS] 4.1 What is amortization? [2] 4.2 An investor wishes to purchase a level annuity of N$ 120.00 per annum payable quarterly in arrear for five years. Find the purchase price, given that it is calculated on the basis of an interest rate of 12% per annum (a) Effective [4] (b) Convertible half-yearly [4] 4.3 Chris is 35 years old and decides to start saving N$5000 each year, with the first deposit one year from now. The account is awarding % p.a. Chris decides that he will make his last deposit 30 years from now and hence retire at the age of 65. During retirement he plans to withdraw funds from the account at the end of each year (first withdrawal at age 66). 4.3.1 What yearly amount will Chris be able to withdraw to last him to the age of 90? [9] 4.3.2 If Chris's bank above decides to change the interest rate to in the last 10 years of his turning 65, how much will he have in this account upon retirement? [5] QUESTION 4.[25 MARKS] 4.1 What is amortization? [2] 4.2 An investor wishes to purchase a level annuity of N$ 120.00 per annum payable quarterly in arrear for five years. Find the purchase price, given that it is calculated on the basis of an interest rate of 12% per annum (a) Effective [4] (b) Convertible half-yearly [4] 4.3 Chris is 35 years old and decides to start saving N$5000 each year, with the first deposit one year from now. The account is awarding % p.a. Chris decides that he will make his last deposit 30 years from now and hence retire at the age of 65. During retirement he plans to withdraw funds from the account at the end of each year (first withdrawal at age 66). 4.3.1 What yearly amount will Chris be able to withdraw to last him to the age of 90? [9] 4.3.2 If Chris's bank above decides to change the interest rate to in the last 10 years of his turning 65, how much will he have in this account upon retirement? [5]