For the loan below, calculate principal interest portion of the payment listed in the last column.
|
|
Amortization
|
Payment
|
Nominal
|
Pricipal/Interest
|
|
Original
|
period
|
interval
|
rate (%)
|
portion of
|
|
Principal ($)
|
(years)
|
monthly
|
12% compounded monthly
|
Payment #
|
|
30,000
|
10
|
|
|
99
|
|
|
|
|
|
|
2. What will be the balance in 25 years of an investment plan that requires year-end contribution of $1000 for 25 years if it earns 7.5% compounded annually for the first 10 years and 8% compounded annually thereafter?
3. If Hans contributes $1500 to his rrsp on February 1, 1990 and every 6 months thereafter up to and including February 1, 2017, what amount will he accumulate in the RRSP by August 1, 2017? Assume that the RRSP will earn 8.5% compounded semi-annually. How much of the total will be interest?