WEEK THREE

1. (Nonannual compounding using a calculator) Hank Schrader plans to invest $2,000 at the end of each 6-month for 7 years into an account with an APR of 11.3 percent compounded semiannually. He will use this money as a down payment on a new home at the end of the 7 years. How large will his down payment be 7 years from today? After 7years, Hank will have $ (Round to the nearest cent.) ANSWER:

2. (Loan amortization) Mr. Bill S. Preston, Esq., purchased a new house for $130,000. He paid $25,000 down and agreed to pay the rest over the next 10 years in 10 equal end-of-year payments plus 6 percent compound interest on the unpaid balance. What will these equal payments be? The equal payments will be $. (Round to the nearest cent). ANSWER:

PLEASE ANSWER CORRECTLY AND FULLY!!!