The equivalent compounding discount rate to the 5% compounding interest rate if the time of the investment is 3 years, the frequency of compounding in semi-annual and the amount of the investment is 2000 use is:   a. 5.13% b. 4.35% c. 6% d. 4.88%

9. A loan of $10000.00 taken out 6 months ago is to be repaid by 3 equal installments due now, 1 years from now, and 1.5 years from now respectively. What is the size of the equal installments if interest on the debt is 6% p.a. compounded monthly? I

Problem 3. Calculate the annual worth in years 1 through 10 of the following series of incomes and expenses, if the interest rate is 10% per year. Year 0 1-6 7-10 Income, S/Year 10,000 800 900 Expense, S/Year 2000 200 300

2. A company wishes to establish a fund to cover the maintenance of a machine for its lifetime of 12 years. The maintenance charges are paid at the end of each year of service and are estimated to be $1000 the first year and increase by $100 in each subsequent year. How much money must be invested at the beginning of the first year to pay for the maintenance costs if the interest rate is 4% per year?