1. Ato Kebebew borrowed Birr 7000.

The loan plus the interest is to be repaid in equal

quarterly installments made at the end of each quarter during a 2 year interval. The
interest rate is 16% compounded quarterly.

A) Find the quarterly payment

B) Find the interest accumulated
C) Prepare an amortization schedule

2. What is the cash value of a car that can be bought for Birr 200 down payment and Birr 82
a month for 18 months, if money is worth 12% interest compounded monthly?

3. How much should you deposit in an account paying 6% compounded quarterly in order
to be able to withdraw Birr 1000 every 3 months for the next 3 years?

4. What is the present value of an annuity of seven payments of Birr 1000 each made at the
end of each quarter with an interest rate of 12% compounded monthly?

5. At the time of retirement, a person has Birr 200,000 in an account that pays 12%
compounded monthly. If he decides to withdraw equal monthly payments for 10 years, at
the end of which time the account will have a zero balance, how much should he
withdraw each month?

6. Mrs. Almaz purchased a house for Birr 50,000. She made an amount of down payment
and pay monthly Birr 600 to retire the mortgage for 20 years at an annual interest rate of
24% compounded monthly.

Required: Find the mortgage, down payment, interest charged, and the percentage of the
down payment to the selling price.