Problem 2.7 A loan of $8,000 must be repaid with 6 year-end level payments (i.e., constant payments). The effective annual loan rate is 11%. What is the annual payment?
Problem 2.8 You make a deposit now into an account earning 6% annually in return for a payment of 250 at the end of each of the next 8 years. What should you deposit today?
Problem 2.9 An annuity immediate has semi-annual payments of 1,000 for 25 years at a rate of 6%, convertible quarterly. Find the present value.
Problem 2.10 A 10-year annuity-immediate pays 100 quarterly for the first five years. Starting year 6, the annuity immediate pays 300 quarterly for the remaining five years. There is a nominal annual interest of 8% convertible quarterly. Find the present value of this annuity.
Problem 2.11 You borrow 10,000 and agree to repay the loan with 5 level payments of 2,500 at the end of each payment period. What periodic interest rate are you paying?