SHOW WORK!

1) Amortization Schedule Set up an amortization schedule for a $30,000 loan to be repaid in equal installments at the next 3 years. The interest rate is 8% compounded semiannually. (a) Amortize loan with fixed principal payment; (b) Amortized loan with fixed payment.

2) Five banks offer annual percentage rates of 6% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. What effective annual rate does each bank pay? If you deposit $5,000 in each bank today, how much will you have in each bank at the end of 2 year?

3) You plan to make a series of deposits in an individual retirement account. You will deposit $1,000 today, $2,000 in two years, and $2,000 in five years. If you withdraw $1,500 in three years and $1,000 in seven years, how much will you have after eight years if the interest rate is 7 percent? What is the present value of these cash flows?

4) You want to buy a new sports car for $55,000, an APR of 5.6 percent, compounded monthly, the contract is in the form of a 60-month; (a) If the payment is at the beginning of the month, what will be your monthly payment? (b) If the payment is at the end of the month, what will be your monthly payment?