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1. Today, you are buying an annuity which will pay you $25,000 a year for 20 years. The payments are paid annually, starting today. How much are you paying if the interest rate on the annuity is 5%?
2. You borrow $110,000 from the bank to be paid monthly over the next 25 years. If interest is 7.5% compounded monthly, how much interest will you pay (in dollars) over the life of the loan? (Assume you make each of the required 300 payments on time.)
3. What would your payment be on a 10-year, $150,000 loan at 10% interest compounded semi-annually assuming the payments are made annually
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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