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Semiannual payments are required on an $90,000 loan at 8.0% compounded annually. The loan has an...

  1. Semiannual payments are required on an $90,000 loan at 8.0% compounded annually. The loan has an amortization period of 15 years. Calculate the interest component of Payment 5.  

Interim calculations should be to six decimal places; final answer to the nearest cent.

2. Raj has accumulated $500,000 in his RRSP and is going to purchase a 20-year annuity from which he will receive month-end payments. The money used to purchase the annuity will earn 5% compounded monthly. If payments grow by 2.5% compounded monthly, what will be the initial payment?

Interim calculations should be to six decimal places; final answer to the nearest cent.

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