Question

the difference between two different loan plans is 101,525.598.
the first plan is infinite annual end-period equal payments, while
the second plan is the same end-period but payable in 24 years.
what is the amount of the equal payments if it is the same in both
plans and interest is computed at 10% compounded annually

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Abdul-Rahim Taysir

Answer #1

Loan amount = $ 101,525.598

Interest rate = 10%

A. When the payment is made for an infinite time period.

Annual pay.ent for an infinite time period = $ 10,152.56

B. When the payment is made for 24 years.

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years from now. he planned to receive 100000 at the end of each
year for the nest 15 years starting from the first year of his
retirement. if the insurance company offers an investment of
11.495% interest rate compounded quarterly, what will be hi s
quarterly payments.
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