Question 8: (a) Construct an amortization schedule for a loan of $11,800 to be repaid by an 8-payment annuity-immediate at an effective interest rate of 4.5% per year

(b) What would be the difference between an amortization schedule and a sinking fund schedule for the loan repayment in (a)?

Question 9: Find the discounted expected value of a series of payments of $500 made at the end of each year for the next eight years with r = 4%. There is a probability of (0.85)^x that the x^th payment will be made.