Calculate the equivalent equal annual payment and the


1. Calculate the monthly mortage payment for a 20 year $300,000 mortage at 4.35% per annum (compounded monthly). What is the principal balance after 12 years?

2. A sum of 25,000 is to be paid out as a series of 10 annual payments in which each payment is 250 larger than the previous one. For an interest rate of 6.5% compounded annually, calculate the first and last payments.

3. Calculate the equivalent equal annual payment and the present worth of the following series at 9% compounded annually. A1. $6000 A2. $8000 A3. 10000 A4. 12000 A5. 16000

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Financial Management: Calculate the equivalent equal annual payment and the
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