1. You owe your parents $29,000 (in present day dollars) and want to repay them in equal amounts the first to occur in 3 years from today and the other in 6 years from today. If the interest rate is 14.5% per annum compounding monthly, what will be the amount of each repayment? 
2. Jack borrows $500,000 for 10 years at a fixed interest rate of i % p.a (EAR). If the debt is repaid in equal year-end payments over the 10 years, the amount of interest Jack pays in the first 5 years (years 1 to 5):
3. You invest $3,000 and earn $561 over 20 months. What nominal rate of annual interest (compounding monthly) did you earn? (expressed as a percentage to two decimal places; don't use the % sign)
4. You are wishing to accumulate $13,000 for an expedition in 4 years' time. You will make 8 equal deposits (half yearly) with the first deposit today. If you earn 7.3% per annum compounding twice yearly, what deposit will be needed? (round to nearest cent; don't use $ sign or commas)
5. Suppose you will receive $16,000 in 10 months and another $10,000 in 20 months. If the discount rate is 7% per annum (compounding monthly) for the first 13 months, and 11% per annum (compounding monthly) for the next 7 months, what single amount received today would be equal to the two proposed payments? (answer to the nearest whole dollar; don't include the $ sign or commas)
6. You have the alternative of paying for university fees today for a payment of $16,000 or, you can select a payment plan where you pay $6,000 in 9 months from today and another $9,000 in exactly 23 months from today. If the interest rate is 9.5%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment? (expressed in present day value rounded to the nearest cent; do not show $ sign or comma separators; if the payment plan is more costly than $16,000 today, your answer will show a negative eg. -300.35)
7. A savings plan requires 48 deposits of $410 per month commencing today. If the interest rate is 10.2% p.a compounding monthly, the value of the investment plan in exactly 4 years from today will be closest to:
8. Which of the following is CORRECT? When discounting an amount to be received in one yearsâ time at a rate that is quoted as 12% compounding quarterly, we can:
9. If money is invested for 10 years at a simple interest rate of 5.6% per annum, the nominal interest rate per annum, compounding monthly, is (as a percentage rounded to three decimal places; no % sign):

Answer rating: 100% (QA)

To calculate the equal repayments for the loan to your parents we can use the formula for the present value of an annuity PV C 1 1 r12n r12 where PV is the present value of the loan C is the equal rep... View the full answer