1. A debt of $10 000.00 with interest at 8% compoundedquarterly is to be repaid by equal payments at the end of everythree months for two years.

a) Calculate the size of themonthly payments.

b) Construct an amortizationtable.

c) Calculate the outstandingbalance after three payments.

      AmortizationTable

Payment Number	Amount Paid	Interest Paid	Principal Repaid	Outstanding Principal Balance
0
1
2
3
4
5
6
7
8

2. Barbara borrowed $12 000.00 from the bank at 9%compounded monthly. The loan is amortized with end-of-monthpayments over five years.

a) Calculate the interest included in the 20thpayment.

b) Calculate the principal repaid in the 36thpayment.

c) Construct a partialamortization schedule showing the details of the first twopayments, the 20th payment, the 36th payment, and the last twopayments.

d) Calculate the totals of amount paid, interest paid,and the principal repaid.

      

Payment Number	Amount Paid	Interest Paid	Principal Repaid	Outstanding Principal Balance
0				$12 000.00
1
2
19
20
35
36

3. A $248 000.00 mortgage amortized by monthly paymentsover 35 years is renewable after five years. Interest is 8.12%compounded semi-annually.

         a) What is the size of the monthly payments?

         b) How much interest is paid during the first year?

         c) How much of the principal is repaid during the first five-yearterm?

4. A $180 000.00 mortgage is to be amortized by makingmonthly payments for 22.5 years. Interest is 7.2% compoundedsemi-annually for a four-year term.

         a) Compute the size of the monthly payment.

         b) Determine the balance at the end of the four-yearterm.

c) If the mortgage is renewedfor a five-year term at 8.66% compounded semi-annually, what is thesize of the monthly payment for the renewal term?