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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?
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