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Question: q1 parents put aside 1500 per year for the first...

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Q1) Parents put aside $1,500 per year for the first five years and an additional $25,000 at the end of the fifth year for their kids college fund. If the interest rate is 8% (compounded yearly) for the first 10 years followed by 7% (compounded monthly), determine the fund available at the end of 18th year. Q2) A loan of $50,000 at 8 percent compounded annually is to be paid off in 25 years by uniform annual payments beginning at the end of the first year. These annual payments proceed on schedule until the end of the eighth year, when the borrower is unable to pay and misses the payment. He negotiates with the lender to increase the remaining 17 payments in such a way that the lender continues to receive 8 percent. What is the amount of the original and final payments in the series? Q3) A sum of sufficient magnitude is to be invested now so that starting 10 years from now an amount of $2000 per year can be paid in each of 8 succeeding years. The unexpended money remains invested at 8 percent compounded annually. How much must be allocated now? Q4) A mortgage that was originally $20,000 is being paid off in regular quarterly payments of S500. The interest is 8 percent compounded quarterly. How much of the principal remains after 9 years, or 36 payments?

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