Reference no: EM132555855

Question 1: Canada Healthcare has just borrowed $3,400,000 on a ten-year, annual payment term loan at an 8 percent rate. The first payment is due one year from now. Construct the amortization schedule for this loan

Year Beginning Balance Annual Payment Annual Interest (8%) Repayment of Principal Ending Balance

1- $3,400,000

2-

3-

4-

5-

6-

7-

8-

9-

10-

Question 2:  Find the following values:

a. The future value of a lump sum of $8,000 invested today at 6 percent, annual compounding for 5 years.

b. The future value of a lump sum of $8,000 invested today at 6 percent, quarterly compounding for 5 years.

c. The present value of $8,000 to be received in 5 years when the discount rate is 6%, annual compounding.

d. The present value of $8,000 to be received in 5 years when the discount rate is 6% quarterly compounding.

e. What is the present value of an ordinary annuity who pays $2,000 per year for 5 years at 6 percent?

f. What is the present value of an annuity due who pays $2,000 per year for 5 years at 6 percent?

g. What is the future value of an ordinary annuity who pays $2,000 per year for 5 years at 6 percent?

h. What is the future value of an annuity due who pays $2,000 per year for 5 years at 6 percent?