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ll wIlh 1u equal payments of principal. Interest at 6% convertible semiannually is paid on...

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ll wIlh 1u equal payments of principal. Interest at 6% convertible semiannually is paid on the outstanding balance each year. Find the price to yield an investor 10% convertible semiannually A borrows $2000 at an effective rate of interest of 10% per annum and agrees to repay the loan with payments at the end of each year. The first payment is to be $400 and each payment thereafter is to be 4% greater than the preceding payment, with a smaller final payment made one year after the last regular payment. a) Find the outstanding loan balance at the end of three years. b) Find the principal repaid in the third payment 31 . 32. A has money invested at effective rate i. At the end of the first year A withdraws 162

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